The Central Bank mortgage rules have been in place for almost a year and a half now but still their impact divides opinion.
Many people looking to buy are unable to meet the rules that they must have at least a 10% deposit due to the length of time it takes to save such an amount at a time when many are paying exorbitant rental costs.
A new survey this week revealed that seven out of 10 new buyers said they were affected by the Central Bank rules.
The survey, was commissioned by the Irish Brokers Association, the Banking and Payments Federation, Ibec’s Property Industry Ireland, the Society of Chartered Surveyors, the Construction Industry Federation, IPAV and estate agencies including DNG, and others and found that the rules were hampering people’s bid to buy a home.
It revealed that four out of 10 will have to borrow from family and friends to get a deposit together while those saving estimate it will take up to six years to get enough money together for a deposit.
Up to a quarter of those planning to buy had already factored in some form of gift from a relative or friend in helping them meet the requirements while 52% had excluded the area where they want to live from their search because they simply cannot afford it.
It also revealed that six out of 10 would-be buyers are paying high rents while trying to save.
It comes at a time that the average first-time buyer is having to come up with a deposit of €61,000 for a home with critics of the rules suggesting that only those with rich parents are now able to buy.
The survey was undertaken to form part of a submission to the Central Bank’s forthcoming review of the rules.
It will be interesting to see what, if any, changes are made to the system.
What is your opinion on the rules?
- Do they work?
- Are alterations needed?
- Have they hampered you or someone you know?
Have your say below…