Unaffordable €50,000 deposit now required for Dublin First-Time Buyers

February 8, 2017

A new Central Bank report has revealed that the typical deposit required for a first-time buyer in Dublin has risen from €30,000 to €50,000 in just four years, which is almost back at crisis peak level.

Dublin Social Democrat Councillor Gary Gannon said “the Central Bank report shows just how unaffordable house prices are again for Dublin first-time buyers.

The average deposit required has risen by 66% in just four years. This has put average homes beyond the reach of the vast majority of young couples, and made it virtually impossible for single people to purchase a home.

In the Budget for 2017, the Government adopted an approach of deliberately trying to drive up the cost of housing. Introducing a Help-to-Buy scheme for first time buyers won’t help first-time buyers at all. It will just drive prices up even further. What it should be doing is driving down the costs of building by focussing on land costs, finance costs and bringing vacant sites and public land into use.

There has to be a more urgent response from Government. A Government report published just today has confirmed serious delays in the Government’s own strategy.

Not one cent has yet been allocated to Local Authorities to fund site preparation works under a special scheme announced last year; there is very little progress in using public land banks to deliver more housing; and actions in relation to using vacant sites are too slow and inadequate.

[ENDS] 8th February 2017