MyHome.ie Blog
  • MyHome Living
  • News
  • RetroFit Hub
  • Buyers Advice Hub
  • Selling
  • Renting
  • Mortgages
  • Property Report
MyHome.ie Blog
  • MyHome Living
  • News
  • RetroFit Hub
  • Buyers Advice Hub
  • Selling
  • Renting
    • Mortgage Learning Center
    • Calculators
    • Best Mortgage Table
  • Property Report
    • All Properties
    • Houses For Sale
    • Apartments For Sale
    • Available To View
    • Overseas Holiday Homes
      • Properties For Auction
      • Upcoming Auctions
      • BER Assessors
      • Property Conveyancing Solicitors
      • Pre-Purchase Surveyors
    • Find Agents
    • All Properties
    • Houses To Rent
    • Apartments To Rent
    • Available To View
    • Share
      • Irish Holiday Homes
      • Overseas Holiday Homes
  • New Homes
    • For Sale
    • To Rent
    • Auction
      • Residential Land
      • Commercial Land
      • Farm Land
      • Farms
      • Sites
    • MyHome Living
    • Buyer Advice Hub
    • Property Report
    • Property Price Register
    • Price Changes
  • Mortgages
    • Rental
    • Holiday Homes
    • Commercial
    • Sharing
Advertisement
  • Home
  • Uncategorized
  • Rent certainty measures could impact on housing supply, warns IMF
Uncategorized
Jan 25, 2016 - 15:07

Rent certainty measures could impact on housing supply, warns IMF

MyHome.ie
By MyHome.ie
Share this article
Facebook Share Twitter Share Linkedin Share Email Share Whatsapp Share
Rent certainty measures could impact on housing supply, warns IMF

Rent certainty measures introduced by the Government in a compromise move to ease the pressure on tenants could dissuade much-needed construction in the housing market, according to the IMF.

The warning was made in its latest post-bailout report last week which identified an increase in the supply of homes as one of the country’s most pressing issues as the lack of accommodation becomes more acute in urban areas.

Measures to reduce the cost of building could jump start construction activity, according to the IMF report’s authors.

The rental measures introduced by the government late last year which provide for a two-year freeze on rent increases could reduce the return on investment properties and dissuade construction, however.

A lack of supply in the market has seen house prices climb rapidly over the past two years.

Advertisement

Figures from the statistical agency Eurostat show house prices climbed by 8.9% up to the third quarter of last year, following an increase of 16% the previous year.

Although the cost of new homes continued to rise last year, the pace at which asking prices increased slowed.

This was largely attributed to the Central Bank’s macro-prudential lending rules.

“The rise in the residential property markets has somewhat abated in recent months in the wake of the macroprudential measures enacted by the Central Bank of Ireland in February 2015, while the supply of new residential housing remains modest,” the report reads.

The Washington-based organisation credits the rules which, imposed loan-to-value and loan-to-income limits on borrowers, with moderating house price expectations and seeking to support the resilience of banks and households.

Advertisement

The fund also recommends that the rules be reviewed periodically and recalibrated where appropriate.

Details of demand for credit contained in a separate EU report also points towards the impact of the Central Bank’s lending rules as dampening demand for mortgage lending which remained flat in the final months of last year.

The Euro Area Bank Lending Survey showed increased demand from businesses and consumers but a flat mortgage market.

Subscribe to our weekly MyHome Living eZine today

Processing your request...

You are subscribed now!

<

  • Tags
  • accommodation
  • Central Bank
  • construction
  • Eurostat
  • government
  • housing market
  • IMF
  • investment properties
  • Rent certainty measures
  • tenants
  • urban areas
MyHome.ie
By MyHome.ie
Share this article
Facebook Share Twitter Share Linkedin Share Email Share Whatsapp Share

Helpful Links

Find your home on MyHome
Read more Articles
Calculate what you can afford to borrow
Welcome to the Retrofit Hub
Advertisement
Advertisement

Related News

What is a Heat Pump?
Uncategorized

What is a Heat Pump?

Feb 27, 2025
Living Cities Initiative
Uncategorized

Living Cities Initiative

Jan 14, 2025
Digital Services Act
Uncategorized

Digital Services Act

Mar 31, 2024
Avant Money and Finance Ireland announce new rates
Uncategorized

Avant Money and Finance Ireland announce new rates

Dec 09, 2021
Average deposit of first-time buyer was €52,000 in first half of the year
Uncategorized

Average deposit of first-time buyer was €52,000 in first half of the year

Dec 07, 2021
Frequent And Popular Searches
MyHome.ie Blog
Help
Jobs
About
Equality Guidelines
Brand Safety
Contact
Terms & Conditions
Cookie Policy
Privacy Policy
Digital Services Act
Sitemap
© Copyright MyHome.ie 2025
Advertisement