Government Action Plan Explained

It's been a confusing week for buyers, sellers and for any homeowners trying to keep up with property news.  The Government released their Rebuilding Ireland:  Action Plan for Housing and Homelessness, ahead of schedule.

The plan follows on from earlier reports and manifestos such as Construction 2020 – A Strategy for a Renewed Construction Sector and the Social Housing Strategy 2020, both published in 2014 and not implemented by previous government.

So what does it all mean...

The Rebuilding Ireland project is made up of five pillars - to address homelessness; accelerate social housing; build more homes; improve the rental sector and utilise existing housing.

Pillar 1 – Address Homelessness

This section of the plan sets out the government intention to provide early solutions to address the high level of families in emergency accommodation; to deliver supports for people who are currently homeless and to enhance State supports to keep people in their own homes.



Pillar 2 – Accelerate Social Housing

This section outlines plans to increase the level, speed and cost of delivery of social housing and other State-supported housing. Social housing funding of €5.35bn is being made available to create 47,000 units by 2021.   



Pillar 3 – Build More Homes

This is the main section that home buyers and sellers will be focusing on.  It deals with initiatives to increase the output of private housing to meet demand at affordable prices.  The chronic lack of supply is not only affecting homelessness and social housing issues, but it has a very real effect on the private housing and rental sectors.  The target is to build 25,000 new homes every year until 2020 - this is expected to take 12 months to ramp up.


Pillar 4 – Improve the Rental Sector

This is another important section of the plan, but arguably it doesn't goes far enough to really impact the market.  It does address many of the current obstacles to delivering affordable houses and apartments in the private rented sector but the solution comes back to suppl.  Until we build more units, we cannot use them, irrespective of whether that is for the social, private or rental sector.


Pillar 5 – Utilise Existing Housing

The final section of the plan ensures that existing housing stock is used to the maximum degree possible - focusing on measures to use vacant stock to renew urban and rural areas through 14 definitive action, including allowing change of use of commercial buildings into residential units.

Some industry commentators were surprised at the lack of focus on finance and funding, but the reality on the ground is that mortgage approvals have not changed significantly in recent years but drawdowns are down 33% so far this year.  This does not indicate that finance is unavailable to house-hunters, but rather that they are making their mortgage applications and then not going ahead with their purchases. We do not know whether this is due to a change of mind, or lack of a suitable home in the right location at the right price, all we can say for certain is that access to mortgages is not the issue.

Some frustrating statistics came out of the research supporting this report/plan, for example, there is currently planning permission granted for 27,000 homes to be built in Ireland but only 18% are under construction.

As with every Government plan, a certain amount of scepticism is natural and probably sensible; however, this does feel like a strong proposal that is likely to be achievable for the main part.   A Housing Delivery Unit is being established within the Dept. of Housing, Planning, Community and Local Government (DHPCLG) to bring all stakeholders together to identify and resolve barriers to delivery of these new homes and this is where the plan will succeed or fall down.  This was a cross party solution so hopefully, the cooperation and support will help the government to deliver on it.

For specific queries or to speak with a local property expert about your buying and selling needs in Wexford, Wicklow and surrounding areas, contact Michael, Alan or Eileen Kinsella at www.KinsellaEstates.ie .  

Email me directly on michael@kinsellaestates.ie or telephone : +353 53 94 21718

 

Bringing Buyers Back: Return of the FTB Grant

...that's not a grant

It was announced earlier this week that first-time buyers are set to benefit from a new grant in the upcoming Budget.  The ‘Help-to-Buy’ scheme, which is likely to be given by way of a new tax-rebate scheme, is due to be announced in October; however, assurances have been given by the government that that any benefit will be backdated to this week.  These are the only details that have been made available so far but we will post the full details here as soon as they are announced.

The idea of this relief package is to help potential homebuyers who are finding it difficult to get their foot on the property ladder while paying rent.  It is good news for many but it doesn’t really address the big problem, which is the lack of supply for house hunters at the moment.  It feels a bit like the right move by government but at the wrong time.  The biggest problem is certainly a shortage of suitable, affordable starter homes, followed closely by the Central Bank rules that require first-time buyers to pay a 20% deposit on the portion of their new home that exceeds €220,000.  The Housing Minister Simon Coveney implied that the benefit will only apply to new builds and will not extend to second-hand homes. “Whatever we do, it will be on new houses to ensure that we are encouraging a dramatic increase in supply of new houses for first-time buyers. It’s not a grant”. 

There has been a lot of speculation about how substantial the payment might be - the figure of €10,000 has been thrown around - but we are unlikely to know for sure until Budget day in October.  This will be a difficult figure to get right as home buyers in Dublin are paying close to double the price for a 3/4 bed semi-detached house as that paid by new buyers in smaller regional towns nationwide.

Here are two of our houses that might just appeal to first-time buyers or for any family looking for a new home in Wicklow and Wexford:

Wicklow

2 Gorse Haven in Coolboy, Tinahely is an appealing five bedroom home situated within a development of only seven houses. The property has recently been decorated to a high standard and ready for its new family!

Wexford

2 The Road, Riverchapel Wood in Riverchapel (between Gorey and Courtown) is a spacious four bedroom, three storey house located close to Courtown beach and yet is under an hour's drive to Dublin. 

For specific queries or to speak with a local property expert about your buying and selling needs in Wexford, Wicklow and surrounding areas, contact Michael, Alan or Eileen Kinsella at www.KinsellaEstates.ie . 

Email me directly on michael@kinsellaestates.ie or telephone : +353 53 94 21718                     

Good time for investors looking to get out

 Property Industry Ireland, or PII, in conjunction with AIB and DKM Economic Consultants published their quarterly publication Property Watch last week. This report not only brings together key statistics from across the industry, it also follows recent past  trends to allow for more accurate future forecasting. 

One of the more interesting figures to emerge from this report is the prevailing low level of housing commencements.  Despite government prompting and greater funding availability, slightly in excess of 2,000 housing unit builds started in the first quarter of 2016.  Of those 2,000, 38% were one-off builds.   This number falls short of the total level of house building forecast for the year, which is 11,000.  Even if these 11,000 homes are delivered in 2016, it is still hugely below the 30,000 that is needed annually for the next few years.  It is not good news for home buyers and for residential investors (unless they are willing to take on 'project ' properties or refurbishment jobs).

So what does all this mean for sellers?  Actually, it is good news for sellers who will face less competition for their home when trying to attract a buyer.  Of course, this is true only if the seller is not trying to find a new home to trade up or down to.  For investors who are looking to offload some investment properties, there really has not been a better time in recent years to bring units to the market.  While demand does not appear to be growing, it is consistent and with the stock of available housing on the markets dwindling every month, prices in most areas are increasing.

Last month I mentioned how would-be buyers queued from dawn to secure planned - but as yet, not built - new houses in North Wicklow (Newtownmountkennedy).  This obviously creates opportunities for sellers even in the south of the county and in bordering counties, like Wexford, to make their homes more attractive now for families who are open to a commute of up to one hour.

 As the current generation of first-time buyers moves away from the concept of a 'starter home', it now makes sense to consider a three or even a four bedroom home with garden and proximity to schools within an hour drive of the capital, over  a one or two bedroom apartment on the outskirts of Dublin's M50 at the same, and sometimes higher price.

 With our entire planning system facing overhaul this year, in accordance with the government’s programme for the year, this low level of output is not going to improve quickly.

This might be relevant for the owners of run-down houses in the area, who were previously reluctant to spend the necessary money to get their properties market-ready.  If this applies to you, just give me a call directly on  +353 53 942 1718 and I will let you know about the demand (house-hunters and their budgets) in your particularly area.

For specific queries or to speak with a local property expert about your buying and selling needs in Wexford, Wicklow and surrounding areas, contact Michael, Alan or Eileen Kinsella at www.KinsellaEstates.ie .  

Email me directly on michael@kinsellaestates.ie or telephone: +353 53 94 21718 

Buyers queue from dawn to buy Wicklow homes

Last week in the Irish Independent, the following headline had property market watchers and commentators up in arms:  ’Queueing from dawn for chance to buy a home’

Unfortunately, the headline was accurate (not always a given!).  Dozens of  potential home buyers, mainly first-time buyers, camped outside the sales office of a second phase development in Newtownmountkennedy.  Fifty properties,  two-bed, three-bed and four-bed homes were launched, selling off-plan,  with price tags from €199,000 to €310,000.  38 sold within hours of the sales launch and the remaining 12 are apparently attracting competitive interest.

While this might appear ridiculous, we do understand; it is a reaction to the marketplace at the moment.  We know that buyers are frustrated by the lack of available housing, particularly in County Wicklow.  So with that in mind, here is a selection of our Carnew, County Wicklow houses, all less than an hour from Dublin:

11 Coves Brook, with an asking price of €130,000 is excellent value for a four-bed detached house and garden with beautiful views and convenient location.

http://www.kinsellaestates.ie/residential/brochure/11-coves-brook-carnew-wicklow/3246359

11 Brookfield is a prestigious five-bed detached residence on 1/3 of an acre, constructed in 2003 and in excellent condition. It is close to several beaches and golf courses, with an asking price of €255,000.

http://www.kinsellaestates.ie/residential/brochure/11-brookfield-carnew-wicklow/3475685

Soldier’s Bench is a spacious three-bed bungalow on 1/4 of an acre.  Within walking distance of Carnew, this beautifully appointed home offers the best of both rural and town living/facilities.  With an asking price of €169,000, viewers won’t be disappointed.

http://www.kinsellaestates.ie/residential/brochure/soldier-s-bench-carnew-wicklow/2763422

14 Brookfield is a large detached home on a substantial site within this mature development, surrounded by open fields and an stream.  The internal finish is of a high quality with a low maintenance garden.  The asking price is €215,000.

http://www.kinsellaestates.ie/residential/brochure/14-brookfield-carnew-wicklow/3378564

Offered for sale in partnership with The Leinster Property Auctions, 19 Coolattin Gardens in Shillelagh, this charming four-bed house has an AMV of €220,000. Coollattin Gardens is a unique development of just 20 high spec detached homes located close to Coollattin Golf course.

http://www.kinsellaestates.ie/residential/brochure/19-coollattin-gardens-shillelagh-wicklow/2434638

For specific queries or to speak with a local property expert about your buying and selling needs in Wexford, Wicklow and surrounding areas, contact Michael, Alan or Eileen Kinsella at www.KinsellaEstates.ie .  

Email me directly on michael@kinsellaestates.ie or telephone : +353 53 94 21718