New housing market report shows level of cash purchases is about 35%

New housing market report shows level of cash purchases is about 35%

New housing market report shows level of cash purchases is about 35%

  • Press Release

26 August 2014 Conor O’Donovan, MBA – Director of Policy & Communications



New Housing Market Report shows the level of cash purchasers is about 35%.

Nine out of ten property professionals expect that average national house prices will
be higher in 12 months’.

Investors account for over 20% of purchases

Tuesday 26th August 2014: A new housing report published by the Society of Chartered
Surveyors Ireland, has found that cash purchases accounted for about 35% of transactions in
the second quarter of the year.

The finding, which was made in the SCSI’s first Housing Market Report, would indicate that
the level of cash transactions is beginning to moderate, as data previously published by the
Society had put the figure for Q1 at about 50%.

The SCSI, which is the professional representative body for estate agents and construction
professionals, said the new finding would suggest that mortgage availability has improved.

According to the report, which is based on a survey of property professionals across the
country, the pace of sales activity levels in the property market (sales enquiries, sales agreed
and sales completed) increased in the second quarter of the year.

Ninety per cent of respondents believe average national house prices will be higher in 12
months’ time, one in three believing they will rise by 5%. An even higher figure, 97% believe
Dublin house prices will rise over the same period, one in four saying they will be 10% higher.

First time buyers accounted for 44% of transactions, while movers accounted for 29%. The
reports suggests this moderate improvement in housing mobility may be due to some
properties lifting out of negative equity and the availability of products which allow people to
move and retain their tracker mortgages. About 22% of units were purchased as Buy to Let or
investment properties.

Simon Stokes, Chair of the Residential Property group of the SCSI said that the increased
sales activity levels identified in the report and the re-emergence of investors suggested an
improvement in confidence in the property market. However he warned that the lack of supply,
especially in Dublin remained a key issue.

“Ninety per cent of respondents in Dublin believe there is a greater demand for housing than
supply and 70% believe that demand will continue to outstrip supply in Dublin in 12 months’
time. We urgently need more homes to be built and the Society recently called for a number
of measures to increase the supply of new homes including a Builders Finance Fund to help
small builders access development finance, a 2 year reduction in VAT on new homes to 5%
and a reduction in development contributions.

“These measures would go some way to alleviating the supply restrictions in the market and
the worrying pace of property price increases. However the situation in the west and mid west
is very different with 60% and 80% respectively believing that supply is greater than demand
and that is an issue which also needs to be addressed.

“The report suggests that there has been an improvement in confidence from investors in the
property market, which has been supported by improved yields and finance availability. This
should help improve the quality of rental stock but we still need to see more housing being
built to improve supply levels and moderate the pace of rent increases”.

The report found that problematic reports and surveys accounted for almost a third of failed
property transactions, while bank and legal delays accounted for a similar number.

Full details of the Housing Market Report can be found at


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