The price of a three bed semi detached house in Connacht/Ulster is predicted to rise by 8% while the price of a 4 bed semi is expected to rise by 8.7%.
That’s according to according to the Society of Chartered Surveyors Ireland who say they expect residential property prices to increase by 7% in 2017.
According to the SCSI’s Annual Residential Property Review and Outlook Report 2017, the price of the most popular house type, the 3 bed semi detached is predicted to rise by an average of 9.4% nationally.
They predict rents will rise between 8 and 10% outside of rent control areas and that the biggest property price increases in 2017 will be outside of Dublin.
Ronan O’Hara Chair of the SCSI’s Residential Agency Group said the lack of supply, public policy and projected economic growth may continue to inflate house prices, but he warned that the latter could not be taken for granted given the uncertainty caused by Brexit.
“Four our out of five surveyors (78%) outside Dublin believe Brexit will have a negative impact on our economic growth. While this figure drops to 50% in Dublin, it shows the uncertainty which exists for the coming year.”
“The drop in sterling has reduced the buying power of people looking to move here and that is probably one of the reasons why thirty six per-cent of surveyors across the country believe that Brexit has already had a negative impact on residential activity levels. Interestingly, a clear majority of surveyors (62%) anticipate that additional countries will vote in favour to leave the EU over the next 3 years.”
“On the other hand, the changes which the Central Bank made to its lending rules and the introduction of the ‘Help to buy’ scheme are likely to contribute to an increase in activity in the short to medium term. Eighty per-cent of respondents to our survey believe ‘Help to buy’ will lead to price increases in the coming year. While this is good news for vendors, struggling first time buyers will be disheartened. While rising prices will probably encourage more builders to start building houses it really is up to Government to tackle some of the underlying issues - including high construction costs - and to make housing more affordable.”