Kildare semi-D €65k beyond working couple

The clear message from the report was the urgent need to increase supply
Kildare semi-D €65k beyond working couple

“This report makes depressing reading,” said cllr Angela Feeney, Labour’s candidate for Kildare North

A SOBERING report released this week has shown that even if both purchase partners in Kildare are earning more than a grand a week, have saved almost €50k deposit and availed of the ‘Help to Buy’ relief, they will still fall €65,000 short of the average price of a new, three-bed semi in the county.

This comes only a week after the shocking revelation that the average house price in Kildare has now topped €400,000, a new, three-bed, semi-detached in the county is now priced at €487,821, with property prices nationally having increased by 144.5 per cent from their trough in early 2013.

This all came to light in the mid-year report from the Society of Chartered Surveyors Ireland (SCSI) released this week that focussed on affordability in five counties.

A couple on a combined salary of €107K who want to buy a new three-bed semi and who have the 10 per cent deposit. will afford to buy in only one of the five locations, namely Meath, and only then with the support of the First Home Scheme.

“This report makes depressing reading,” said cllr Angela Feeney, Labour’s candidate for Kildare North.

“Sadly this is the scenario I met so many times while out campaigning for the local elections, many parents worried about their adult children, still living at home even though they are working and have a good education behind them, and it is one I share myself as a parent of adult children.” 

“It is shocking to hear that a couple on a combined income of €107K who want to buy a new three bed semi and have the 10% deposit, couples will still face a shortfall of €65,000. Whoever would have thought this could be allowed to happen?” she said.

Her concerns were echoed by a spokesperson for the SCSI.

“Last year our case study ‘couple’ could buy in three locations without the support of the First Home Scheme (FHS), however this year a new home is only affordable in one and that is with FHS support, so the widening affordability gap is a real concern,” said Gerard O’Toole of the SCSI.

“While buyers with savings should be able to overcome the gap in Meath, Galway and Cork, new three-bed homes in Wicklow and Kildare remain totally out of reach for people on these salaries.

“In addition, there are thousands of people on lower salaries who will not be able to buy and will require support.

“This year’s report included an affordability scenario for a two-bed terraced house in all five locations and the picture here was a great deal more positive with the affordability gap met in four locations without recourse to FHS while in Wicklow it was met with the support of FHS.” 

Gerard O’Toole said the clear message from the report was the urgent need to increase supply.

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