Update: Inflation in Housing Property Sector, 24th June 2015

QUESTION NO:   269

DÁIL QUESTION addressed to the Minister for Finance (Deputy Michael Noonan)

by Deputy Bernard J. Durkan

for WRITTEN ANSWER on 23/06/2015  

  To ask the Minister for Finance if he is satisfied that inflation in the housing property sector is not fuelled by speculation; if equal treatment is being provided to individual householders seeking mortgage facilities as compared to speculative ventures; and if he will make a statement on the matter.

REPLY.

The most recent data published by the CSO indicates that national residential property prices increased by 15.8 per cent over the 12 months to April 2015. Focusing on more recent house price developments, prices decreased by 0.9 per cent in the first quarter of 2015.

Data published by the Banking and Payments Federation Ireland (BPFI), indicates a continued increase in mortgage activity. In the first quarter of 2015, 5,618 mortgages were drawn down which represents an increase of 64 per cent compared with the first quarter of 2014. In terms of market composition, First Time Buyers (FTBs) drew down 53.6% of mortgages in the first quarter of 2015. The FTB and mover-purchases accounted for 85.5% of mortgages drawn down. In terms of mortgage loan values, FTB are the largest segment of the market with 50.9%. FTBs and mover-purchasers together accounted for 89.8% of the market. These figures would appear to indicate that speculative ventures are not receiving more favourable access to mortgage facilities compared with individual householders.