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Housing commencements rose by over 31% in Q1

Housing commencements rose by over 31% in Q1

New figures today show that the number of housing commencements rose by 31.6% in the first quarter of the year compared with the same time last year.

The latest Housing Market Monitor, published today by Banking & Payments Federation Ireland, showed that 5,8000 housing commencements were registered in the first thee months of the year.

The Housing Market Monitor also showed that mortgage approvals and drawdowns both grew strongly in the first quarter, increasing by 9.2% and 8.9% respectively.

It noted that the volume of purchase mortgage drawdowns rose to its highest first quarter level since 2008.

The BPFI figures also revealed that cash sales accounted for an estimated 27.1% of sales on an annualised basis in the first quarter of this year, down from 31.2% a year earlier.

Meanwhile, residential property prices increased by 3.9% year-on-year in March – the lowest rate of annual growth in average prices since August 2013.

The BPFI said its latest Housing Market Monitor points to the need for a range of solutions and stakeholders to meet current housing needs.

Its economist Ali Uğur said that in recent years the private rented sector has been dominated by residential individual investors.

“BPFI mortgage drawdown data show that these individual investors accounted for around 20% of the value of drawdowns in 2006 during the peak of activity. However, since 2008, along with the decline in activity until 2013, the share of mortgages accounted for by residential individual investors declined significantly,” the economist said.

He said the market is seeing increased activity by the non-household sector – which includes companies such as pension funds, specialist private rental firms and Real Estate Investment Trusts (REITs) in the domestic residential property market.

“This in a way shows that, to a significant extent, buy to let sector investors which have been traditionally individual investors have been replaced by institutional investors in the Irish housing market over the last 10 years, particularly in the new apartment sector,” Mr Uğu said.

He said that while the latest figures shows signs of progress on housing supply, significant challenges remain.

“Given different segments that make up the housing market from a demand perspective and the needs of these different segments, it is important to recognise that we need a number of stakeholders, both from the private and public sector, to play a role in addressing the nation’s housing needs with perhaps a different product mix varying according to needs, from houses to apartments and purchase to rental,” the economist added.

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Housing commencements rose by over 31% in Q1

Housing commencements rose by over 31% in Q1

New figures today show that the number of housing commencements rose by 31.6% in the first quarter of the year compared with the same time last year.

The latest Housing Market Monitor, published today by Banking & Payments Federation Ireland, showed that 5,8000 housing commencements were registered in the first thee months of the year.

The Housing Market Monitor also showed that mortgage approvals and drawdowns both grew strongly in the first quarter, increasing by 9.2% and 8.9% respectively.

It noted that the volume of purchase mortgage drawdowns rose to its highest first quarter level since 2008.

The BPFI figures also revealed that cash sales accounted for an estimated 27.1% of sales on an annualised basis in the first quarter of this year, down from 31.2% a year earlier.

Meanwhile, residential property prices increased by 3.9% year-on-year in March – the lowest rate of annual growth in average prices since August 2013.

The BPFI said its latest Housing Market Monitor points to the need for a range of solutions and stakeholders to meet current housing needs.

Its economist Ali Uğur said that in recent years the private rented sector has been dominated by residential individual investors.

“BPFI mortgage drawdown data show that these individual investors accounted for around 20% of the value of drawdowns in 2006 during the peak of activity. However, since 2008, along with the decline in activity until 2013, the share of mortgages accounted for by residential individual investors declined significantly,” the economist said.

He said the market is seeing increased activity by the non-household sector – which includes companies such as pension funds, specialist private rental firms and Real Estate Investment Trusts (REITs) in the domestic residential property market.

“This in a way shows that, to a significant extent, buy to let sector investors which have been traditionally individual investors have been replaced by institutional investors in the Irish housing market over the last 10 years, particularly in the new apartment sector,” Mr Uğu said.

He said that while the latest figures shows signs of progress on housing supply, significant challenges remain.

“Given different segments that make up the housing market from a demand perspective and the needs of these different segments, it is important to recognise that we need a number of stakeholders, both from the private and public sector, to play a role in addressing the nation’s housing needs with perhaps a different product mix varying according to needs, from houses to apartments and purchase to rental,” the economist added.

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High housing costs key driver of wage demands, conference told

High housing costs key driver of wage demands, conference told

HIGH rents and housing costs are driving wage demands that have become the biggest single challenge facing businesses, according to Kevin Sheridan, managing director of Sheridan Cheesemongers.

“Rising wages puts pressure on staff numbers and has a ripple effect through the business – I think this comes from the housing crisis,” Mr Sheridan said..

“We need it fixed and fixed sustainability,” he added.

Mr Sheridan set up the cheese business with his brother in 1995.

He said that at the time there were “no jobs – rents were low so people were setting up small businesses”.

He was speaking at the ‘Family Business Values’ conference at Dublin City University yesterday, which focused on the unique experience of family-owned firms. The legacy of the late Feargal Quinn, who died last week, was remembered by a number of speakers at the event.

Speaking at the event, Keeling Fruit’s Caroline Keeling said the group was now having to deal with issues which were not a factor 15 years ago, such as sustainability and the environment.

She said the preference in choosing a leader for a family-owned business would always be for family members, but “the biggest thing is to protect the business”

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Housing completions up by over a fifth in first three months

Housing completions up by over a fifth in first three months

Housing completions were up by over a fifth in the first three months of 2019, according to Goodbody’s Housebuilding Tracker.

It uses Building Energy Regulation (BER) data to compile its figures.

The official data tracks electricity connection figures.

According to Goodbody’s figures, 4,255 residential units were completed in the first quarter, an increase of 22% over the same period last year.

It says under 2,500 of these were accounted for by housing schemes.

Apartment completions grew by almost two thirds in the first three months, the data shows.

“As we noted in our Q4 Tracker, planning permissions data was pointing to a large increase in apartment output, although the timing is quite uncertain. At 18% of the total, the proportion of output coming from apartments remains quite small,” Goodbody chief economist Dermot O’Leary said.

Dublin and the surrounding counties accounted for over half of the total completions in the period.

Mr O’Leary said the figures for Q1 were in line with its forecasts of 22,000 housing completions for the full year.

Goodbody’s figures pointed to housing supply reaching a nine year high in 2018, but still remains at half of the country’s estimated demand.

It said 18,855 new dwellings were completed in Ireland last year.