Half of those renting can afford to buy

Half of those renting can afford to buy

Half of those currently renting can afford to buy a property, according to a new report form the Economic and Social Research Institute (ESRI).

The report also found that these people are ready to buy once the economy picks up.

The ESRI’s findings come just days after a UK study found that those who had a mortgage would make a hugely significant saving over their lifetime as opposed to those who rented permanently.

The ESRI also said they expect prices to rise rapidly once peoples’ mindsets change with regard to property.

Economists John FitzGerald and David Duffy found that 40% of those who are currently renting could afford a mortgage – with the majority of these people under the age of 35.

Large numbers of these are said to be based in cities which the ESRI says could lead to a two speed market with price rises in urban areas fast outstripping other parts of the country where there is a huge oversupply.

It is expected that price increases will occur firstly in Dublin, Cork and Galway.

Such is the shortage in the capital, that more houses will have to be built in the next decade.

The think-tank did not say when it thinks prices will recover, but estimates that there will be a demand for between 15,000 and 20,000 houses a year for the next decade as younger people form more households.

To find out whether it might suit you to rent or buy check out MyHome.ie’s Rent or Buy Calculator.

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