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Pack your bags

If you've moved back in with your folks to save money you're certainly not alone

More than a quarter of 25-34 year-olds have done so.

MORE THAN A quarter of 25-34 year-olds are moving back in with their parents to save money for the deposit on a house.

That’s according to a new survey which also found that nearly 70% of those questioned felt that owing their own home was ‘unrealistic’.

The research was carried out on behalf of Aviva Home Insurance and demonstrates the ever changing attitude towards home ownership among young people in Ireland.

Despite the growing sense that home ownership is becoming more unachievable, about half of those surveyed (49%) still felt that the Central Bank’s new deposit requirement are ‘necessary’. Slightly fewer, 40%, describe it as fair.

Recent research has found that that 37% of adults aged 20-49 are currently renting their home. This though, is in many cases isn’t by choice.

Stefan Gerlach, the deputy governor of Ireland’s Central Bank, was also speaking about homeownership today at the Dubrovnik Economic Conference.

He pointed out that just 17% those currently renting in Ireland plan to do so long-term.

“While this may reflect a cultural preference, or the benefits of homeownership. It seems more than likely that the type, quality, affordability and, in particular, security of tenure of private rented accommodation also plays an important role,” he says

Gerlach argues that there are three aspects that influence the attractiveness of renting. They are:

  • The security of tenancies.
  • The number of letters with multiple properties. He says that in Ireland there are too many private landlords who rent out a single property.
  • Tax policies that favour home-ownership.  Overall, he says it seems desirable for tax policy to be neutral between homeownership and renting. 

Gerlach goes on to argue that, although a strong rental market is important to stave of a boom-and-bust housing culture, it’s only preferable if people can make a true choice between home ownership and renting.

“To reduce the risk and the amplitude of future housing cycles, housing policy needs to consider also financial stability issues,” he told the conference

“In this regard, it seems particularly important to promote a well-developed rental market as a genuine alternative to ownership, and an attractive investment proposition for potential landlords. While many households may continue to buy rather than rent, we need to make sure that this choice reflects their preferences and does not merely reflect a poorly functioning rental market.”

Read: “I would never buy a property again,” says Government’s top housing adviser. “I rent” >

Read: Buying or renting? Which should you be doing? >

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