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Dublin: 9 °C Tuesday 21 May, 2013

Home ownership drops as number of people renting increases

Almost half a million households rent their accommodation, according to the April 2011 Census.

Image: hownowdesign via Flickr/Creative Commons

THE NUMBER OF households in Ireland renting their accommodation has increased by 47 per cent since 2006.

The Census 2011 figures show that in April last year, almost 475,000 households were renting their accommodation. The spurt in letting has led to a sharp drop in overall home ownership. In 2006, that rate was 74.7 per cent but it has now fallen back to 69.7 per cent.

The Central Statistics Office published a report today, Profile 4 The Roof over our Heads – Housing in Ireland, which examines the characteristics of the more than 1.6 million permanent dwellings currently found in Ireland. Of those, 289,451 were unoccupied at the time of the census.

As the arrears crisis continued, the Census asked respondents about mortgages and employment. Of the 583,148 homes which are owned through an existing mortgage or loan, more than 50,000 are headed by a person who is unemployed.

The increase in apartments as an accommodation type in Ireland continued between 2006 and 2011 with 177,587 occupied apartments in 2011, an increase of 27 per cent on the 2006 figure. Apartments comprised 10.9 per cent of all occupied households in 2011 and accounted for almost one-third of all household types in Dublin City, the highest of any local authority area.

Foreign nationals and “smaller homes”

The CSO has also described the “smaller sized homes” as being “back in vogue”. Since 2002, there are more households living in properties with three rooms or less. However, non-Irish nationals were more likely to have fewer rooms with just one in eight Irish households having a maximum of three rooms.

In urban areas households headed by non-Irish nationals paid an average of €181 per week to private landlords, slightly higher than €178 paid by Irish householders. Rents were broadly similar for both groups in rural areas.

Apart from British nationals, home ownership rates among non-Irish nationals remains low. The number of Polish householders with a loan or mortgage increased from 648 in 2006 to 1,820 in 2011, while for residents from the remaining accession states the number of mortgaged households rose by 73 per cent from 1,537 to 2,658 over the five year period.

Unoccupied properties

The number of vacant houses in Ireland actually fell between 2006 and 2011. There were 284,935 empty houses six years ago but only 168,427 last year. However, the number of vacant apartments rose by 48 per cent over the same five year period, with increases recorded in every county.

Holiday homes, of which there are almost 60,000, comprise three per cent of the country’s total housing stock. At 10,636, Donegal had the highest number of empty holiday homes. About half of all holiday homes are located within one kilometre of the coast.

Meanwhile, the CSO has also provided the latest residential property price index which shows a bounce-back in July. Prices rose by 0.2 per cent last month, turning around the 1.1 per cent decline noted in June.

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More: Senator says government should shelve property tax proposal>

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Comments (35 Comments)

  • Working for a living is an expensive business in this country.

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  • Id love to own a home and could repay the mortgage, but they wont give me a mortgage. My repayments would be 70% of what im paying in rent which is frustrating!

    Also, unless the banks start loaning and people start owning property, theres going to e a serious problem when this generation retires as the mortgage should be payed off by then (but you cant afford to keep renting when you retire!)

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  • People should take notice that there is a vast difference between a number of asking prices , say advertised in DAFT.IE and the actual sale prices.

    It is my experience,as a Chartered Surveyor & Estate Agent , that ill advised listings still dominate this site , with asking prices more in line with 2007 then the current year of 2012.

    Talk to reliable SCSI Firms for advice. Most genuine Firms have properties on their books for sale now , with totally realistic price expectations.
    If they don’t have these properties for sale on their lists , then shop around further – the value IS there now & it IS a great time to buy , IF one has the deposit & the job!

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    • I completely agree, having worked for an auctioneer for 2 years the Daft asking prices are pulled out of thin air. The actual sales prices would scare you – people are settling for a fraction of the asking prices just to get a sale. There is a need for a proper final sales price register – the only way you’ll get a true picture of the property market and values.

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  • Kerry you are missing the point. The fact is the property tax they are bringing in will, in some part I agree, be used to provide council housing, in other words housing for people who don’t own a house. If you rent privately you don’t own the property but you still pay the tax, all be it indirectly through your rent. However people in council houses will NOT pay the property tax, as they don’t own the property. Why should one non property owing person be exempt from a property tax while another non property owing person be forced to pay? What is fair and right about that?

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  • I predict the rate of homeownership will continue to fall for years to come. One of the main reasons will be the property tax. Why own your own house and pay a tax the proceeds of which will be used to provide housing to others. My house is in a rural area, no footpaths, no street lighting, no sewerage, and no water supply. Yet this Government want me to pay a property tax so that they can provide housing to people in council estates who get the services I don’t, as well as over paid staff. I’m telling my kids; don’t purchase your own house, rent. Why be stuck with mortgage & upkeep bills & property tax when you don’t have to.

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    • I’d imagine most land lords will pass on the cost of the property tax to new tenets once they know what the charge is. So I’m not sure that your kids if they are lucky enough to get work in Ireland will avoid the property tax by renting.

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    • @Kerry: passing on the tax to the renter would have to be agreed between the renter and the landlord. The renter doesn’t have to agree and can take their business elsewhere. Whereas, the homeowner is stuck with the tax regardless.

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    • It is proposed that the property tax will include those in local authority housing, ie. those renting from local authorities. So if one set of tenants are included then it will probably include tenants from private landlords.

      Stephen, if all landlords decided to up the rent to include their property tax liability then it is the landlord dictating a market movement in the rent and the tenant will have little choice should all landlords act in similar fashion. The other sting in the tail is the landlord may be covering some or all of it’s property tax liability, but they are increasing their income tax liability at the same time with a higher rental income.

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    • Culm do you not realise that Landlords will simply pass on the property tax by way of rent increases because they will have no choice. Rents are at an all time low and it is not conceivable that the owners will be able to absorb the taxes that are likely to be levied on property in the short to medium term. Any tenant of the opinion that they will avoid them is living in a special world of their own.

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    • Rent is low because there is no shortage of properties to rent. So, the lanlords are not dictating the market, the renters are. Once this non shortage of property continues then it is the renters choice as to whether they believe they should pay it.

      Anyway my original point was, the renter is in the position to avoid this tax. The home-owner isnt

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    • Mick as has been said. You dont like the rent you move on somewhere else. The more people move, the lower rent will go, the lower the property prices, the more the tax take will reduce, resulting in higher the tax rates to make up for the shortfall.

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    • Rents going up??
      The real fact is that Every time Joan Burton gets the scissors out and cuts the rent allowance, the rents will drop, no matter if your in Ballsbridge or Ballaghaderreen.
      And the Troica sure ain’t happy with the overinflated rent allowance rates in Ireland.

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  • Firstly this is a good topic which should be discussed more at government level. Most comments follow the same line where we are starting to see a first and second class system of home ownership/renting/. I think the system used in the UK of each and every house being liable for the council tax should be introduced here. Everybody pays no matter if you are in a council house, private house or renting. The household charge and soon to be the property tax system is creating a system of them and us scenario. Even though I don’t like paying more tax on my home as I have already paid stamp duty on its purchase, I believe that everybody should be paying, no matter how big or small there contribution would be. Just my thoughts.

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  • Derek 30/08/12 #

    I still look at it selfishly and think that until the last repayment is made on a mortgage, the house isn’t yours. If, as its happening more often these days, people who don’t repay their mortgage can be removed from the house and the bank takes what’s still theirs so why pay a tax on something you essentially don’t fully own. Also, with so many houses in negative equity, I’d prefer rent than be utterly screwed every way possible by the shower in Govt and Brussels.
    I can pay €600 a month with no extras renting, or €600 mortgage+ Refuse + Water + House tax + Sewage charges and what ever next they have cooking up for us.
    All that eaten into my shrinking wage packet before I even pay to turn the lights or heating on. No wonder the survey a few months back found, was it close to 40% of households have approx €80 at the end of a month? House tax and water will eat that up faster than you can say petrol hike.
    Welcome to modern economic slavery.

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    • Economic slavery…fully agree. But going back to your point regarding the mortgage and ownership of the house or property, this is a mistake lots of people make. Unlike in the US the mortgage on your house is just that, it’s on your house. This is where you hear stories of people simply handing back the keys ‘n telling the mortgage company to f-off. But here the mortgage is secured on your house or property but when you take out the mortgage you personally guarantee to repay that mortgage, ie the mortgage follows you not the house. That is why when the mortgage lender repossess the property and sell it for tuppence they can go after you for the balance that is owing on the property.

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    • Why do you think you would pay no extras renting? Tenants pay for their own refuse, electricity.. and when water comes in, water.

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    • Derek 30/08/12 #

      @Jack, that sounds like even more reason not to get caught in the trap so to speak of a mortgage. I wasn’t sure about the terms of guarantee regarding “ownership” of the mortgage. Thanks for clearing that one for me.
      Seems the States are ahead of us in mortgage protection in that regard. I saw houses being built and sold for 42k back when I was leaving school that 10 years later were being sold again for 280k, I knew that wasn’t natural or sustainable so I made the decision not to commit to a mortgage like many of my friends whose homes are now worth considerably less than their mortgage.
      @Jane, personally I don’t pay for refuse and I said above all this before paying to light or heat the house. Rent is agreed. If it increases to a figure I don’t like, I can move. Home owners especially in neg, equity are exposed and must bare the full blunt of all these and future charges, many with upkeep fee’s also.
      I’m saying that I pay considerable less than many of my friends who have bought houses in the last 6 years. The difference I can save for retirement or a house when the market ever comes to realistic levels again.

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  • I got my home through shared ownership with the council but to be honest Its the biggest mistake i ever made. I eventually remortgaged and bought out the council half. I have to pay all the rates that go with it and I have lost my job now and struggle to keep the payments. Its a small mortgage but If i didn’t get the house I’d still be living at home with my parents. I have had to renovate everything as it was falling down and needed wiring plumbing and total renovation. I did any work at all myself to keep costs down. Those who live in the same area get council houses and I have had people ask me to look around my house (people I know) to see what its like before they “chose” which house the council was giving them. They were shopping around and not a shilling in their pocket. I pay for everything to be done to this house and they get it all free from the council. I am not saying they should not get housing but there was no help for me form anyone putting this house around me. Now that I am unemployed I still have the same costs and household charge/property tax and water rates all coming down the line. Ask anyone living in a council estate. The same people have been housed and moved over and over to suit themselves. Why is there not help from the council for people struggling to pay mortgages, All I know is I am a second class citizen compared to those paying rent. If I could rent again I would but the house is in negative equity and will never sell. Rent is the way to go. I think buying now is mad. Unless you have two incomes on big wages i’d say don’t buy at all.

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  • This has been my argument all along – it’s a home owner tax – not a property tax or a household charge. If you rent, you get off scot free regardless of what services you have access to. If your landlord tries to pass on the charge you can choose to not pay it and move.

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  • Reg 30/08/12 #

    House prices in most parts of Dublin are still the stuff of fairy tales so no surprises really.

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    • Yup they need to drop further then they have, those darn estate agents are advising people wanting to sell to hold off. In reality they just want to drip feed properties to the market and fake the look of a shortfall of demand. Look at daft.ie and go to Foxrock, 400k for a 2 bed apt. I’m sorry but that money should get you a mansion not a pokey 2 bed apt. No harm to see rents come down either still 200 quid too high.

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    • Wages continue to decline, economy is barely growing, costs are going up, add in water charges and property tax which will come to a grand for many people, then it is certain that prices will continue to fall.

      All part of the economic and planning lunacy that this state has has to endure, thanks to FF ministers trying to get their friends/paymasters development land around Dublin zoned for building, making everyone a millionaire in the process.

      Liked living in Dublin when I was there but the thought of paying 1400 a month in mortgage payments for a 3 bed house and another 750-1000 a month in child fees settled it for me.

      You can everything within in a short commute but with 2500 a month going out the door before u have eaten at all, or paid for the car isn’t going to leave u with much of a life after.

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  • Jack that tax liability may also be reflected in increased rents. Landlord aren’t in business for the benefit of their tenants.

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    • Thanks Mick, but if you read my post that is essentially what I said. It was in answer to Stephen, that the landlord will dictate the market not the tenant. The tenants had their time when there were a glut of property for rent on the market. Now the tide is turning, landlords can’t make their repayments so they are either selling out at a loss (voluntarily and involuntarily) therefore the result will mean less property to rent more demand for rental property and ultimately rents will be driven by demand and the passing on of property tax liability by the surviving landlords. I know landlords are not a charity, I was one some time ago but got out just in time!

      Reply
  • Reg 30/08/12 #

    So a 0.2% rise this month ” turns around” a 1.1% drop last month. I mustn’t have been paying attention when I did maths at school.

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  • finbar m 30/08/12 #

    Geoff that has to be the first comment iv seen in here that added up iv seen here in a long time ,,, the day of a fee load has to stop in this country

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    • Only in Ireland are we dumb enough to allow the banks to be paid in triplicate. I hate calling our fellow citizens dumb and include myself in that insult but there is no other way to explain it.

      1: the bank guarantee paid billions to secure the banks balance sheets on mortgages – they’ve already been paid in full for what we owe.

      2: god forbid you go into arrears on your mortgage and your home is repossessed. The bank sells it on for pure profit – payment number 2.

      And here’s where they add insult to injury!

      3: They chase you for the bad loan they sold you that the government have already paid them for, that they’ve already recouped their losses on by selling the asset (dwelling) and now you still have to pay back in full regardless of your financial situation.

      Yup we allow this corrupt and unjust policy to exist. Who do we blame? Yes ourselves, instead of the policy makers we elect to protect our livelihood.

      = dumb, amadán!

      Emigrate, leave your home and let the banks and gov rot for their pound of flesh. The really depressing factor is for many this is their only choice. Furthermore the sorry state of affairs is only going to get worse if you stay in the cesspit that we all call home.

      Thx FF, FG and Labor for ruining our once great nation. I hope you all rot in hell for selling out your people for profit and pensions. Me féin bastards!

      Reply
  • finbar m 30/08/12 #

    Like to know how many renters are getting pay SW ,,up 48% just a thought

    Reply

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