Foreign investors could bring further competition to the housing market

Foreign investors could bring further competition to the housing market

Most of the talk in the property world this week surrounded the growing costs of rent around the country for all types of properties.

There wasn’t a single county where rental costs didn’t rise with Dublin and the commuter belt counties the worst affected as population soars above the amount of available housing stock.

The cost of renting is only expected to grow, however, following the introduction of the new Central Bank mortgage rules.

It’s difficult enough to save for a deposit without rental costs climbing but this week estate agents Savills predicted a new factor that could make it harder for people to buy.

They expect more investors to flood into the Irish market now that a good rent return is almost guaranteed. Indeed, British rule might be coming to Ireland once more with investors there currently buoyed by the strength of the pound against the Euro.

In a new report, the company said the rules, which set a minimum deposit for home purchases, would inevitably force people to spend more time saving before they could buy – which would in turn increase the need for rented accommodation.

Savills said it did not believe the rules would do anything to soften demand for property but would instead lead to a change in the type of buyer in the market.

The firm also said that quantitative easing would help feed investors’ interest in Irish property, as they looked for alternatives for their money against a backdrop of falling deposit yields.

While investors from abroad are expected, Savills predicted that some of this could include emigrants who were looking to move back to be near family and friends again.

  • Do you think rents will rise further this year?
  • Is it possible to save for a deposit while paying such high rents?
  • Will foreign investors prove major competition for those that do want to buy?

Have your say below…

There are 6 comments for this article
  1. Don at 12:11 pm

    Hey guys! What part of Capitalism don’t you understand?

  2. Brian at 7:52 pm

    The Irish Central Bank failed miserably during the boom and now they fail yet again – I personally cannot explain why Ireland is so full of ‘who you know’ Bull – we really do need a rising (ironically) to rid ourselves of the crass stupidity at the heart of every Irish social area. I would laugh were it no sad that we allow morons to run our country.

  3. ldunn at 2:50 pm

    I tried to but the house I rent from the bank, after they repossessed it from my landlord. They refused my offer, only to sell the house months later for 20% less to a large investment company. If this is fair I don’t know the meaning of the word….

    • Gleeson at 5:44 pm

      No it’s not fair…. And it looks as if it was sold to someone they knew. Banks are a disgrace….

    • Pieter at 10:06 am

      I have bought an investment property from the bank. I git it at an exceptionally good price BUT the transaction took more than 7 months to conclude. had I purchased a property from a private individual, completing the transaction in 2 months, I would have scored a fair amount of return on my investment. The loss of income amounts to virtually the difference in price had I purchased privately

  4. Pingback: Foreign investors could bring further competition to the housing market | Rosalie Rodney

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