Brexit is nearing and as it does, it is important to look at the residential property market and how the impact of Brexit may affect the property business. There is some uncertainty in the sector, and this is totally understandable considering the potential outcome to businesses. Here at MM Ward we want to run through the things every buyer needs to know ahead of Brexit.
Most Estate Agents will tell you that house prices are expected to rise by around 5% in 2019 after stabilising in the last quarter of 2018 according to an end-of-year report. A MyHome.ie report suggested that demand and rising incomes will continue to push house prices higher this year – if the uncertainty caused by Brexit is resolved. As reported in the MyHome.ie study, while asking prices nationally fell back by 0.9% and were unchanged in Dublin in Q4 – as per normal seasonal trends – the annual rate of inflation nationally was 6.1% while it was 3% in Dublin. This means the median asking price for new sales nationally is €266,000 down €2,000 from the last quarter while the price in Dublin remains unchanged at €375,000.
Sales to UK buyers have increased by 10pc on average over the past year, a nationwide Brexit property survey has found too. In the survey carried out by the Real Estate Alliance (REA) group, it found that almost half of Irish estate agents have seen an increase in enquiries from the UK over the past year. It also found that 17pc of all property transactions with UK buyers are now directly related to Brexit, with 12pc moving due to jobs.
It is fair to say that with the impact of Brexit and the very real prospect of professionals returning home that the Government needs to invest in the supply of homes in Ireland. Post-Brexit it is expected that more people who may have wanted to move to the UK could choose Ireland as a good settling down option. As we know already, we are struggling to keep up with the demand for properties and an influx of extra people from the UK or otherwise, may prove troublesome.
According to reports, in the next decade, 350,000 new homes will be required to satisfy demand and the residential property sector is still lagging. According to the independent.ie there were 55,000 homes sold in 2018, an increase of just 8pc year-on-year, a rate of growth that has remained consistently low over the past five years. The number of homes for sale has increased to approximately 23,500, but the level of property sales should be about double that.
Uncertain as it is, time will tell how Brexit will impact the residential property sector and hopefully, it will be a positive outcome.