By Ted Healy of DNG TED HEALY
According to the latest residential market review from leading property advisors DNG, house price inflation is now running at its highest level since 2017.
Prices are now 11.1% higher at a national level and are 11.3% higher in the South West than they were in June 2020, as a result of strong price inflation in the market during the first six months of 2021.
The DNG National Price Gauge, which tracks residential property price movements at a national level, excluding Dublin, shows that the average price of a home now stands at €233,582 up from €210,258 in June 2020. In the South West region the average price of a resale property now stands at €266,844 up from €239,671 in June 2020.
The report highlights the fact that in the year to December 2020 the annual rate of house price inflation was running at 1.4% nationally. However, strong demand, coupled with a scarcity of homes for sale in the market, has served to drive up residential property prices across the country in the first half of 2021. In the first six months of the year, an uptick in the rate of increase in house prices has been driven by the shortage of supply in the context of rising disposable income, elevated savings levels and demographic pressures.
At a national level, an analysis of the stock of homes currently for sale indicates that there are approximately 35% fewer homes listed for sale now, compared to the same time last year, and 45% fewer than at the same point in 2019.
The latest results of the DNG House Price and National Price Gauges show that residential property inflation has accelerated markedly in recent months, driven primarily by increased first time buyer demand on foot of record levels of mortgage approvals. Our analysis of purchasers during the second quarter shows that first time buyers continue to dominate the resale market accounting for 54% of purchases during the period. In addition, over two thirds (70%) of buyers rely on mortgage finance in order to complete their transaction.
The elevated level of demand in the current market is evident now because of the easing of the restrictions placed on the property sector and house hunters during the last lockdown. Buyers who had paused their property search during lockdown are now back in the market competing with those buyers with more recent loan approvals.
Cost of agricultural land set to increase by 8% this year
By Ted Healy of DNG TED HEALY The results of a survey on agricultural land values conducted by the Society of Chartered Surveyors Ireland (SCSI) was published earlier this week. […]
By Ted Healy of DNG TED HEALY
The results of a survey on agricultural land values conducted by the Society of Chartered Surveyors Ireland (SCSI) was published earlier this week.
It predicts an increase in land values by an average of 8% this year and an increase of 14% on average in rental values.
The report titled, ‘SCSI/Teagasc Agricultural Land Market Review & Outlook Report 2023’, analyses the agri sector performance over the past year and projects how it will perform over the next 12 months.
In all 134 agri professionals and valuers were surveyed, who expect the outlook for dairy farmers to ease and a challenging future for sheep and tillage farming.
Rental Land values in Munster increased by an average of 13% in the last year with a 9% increase experienced in Leinster.
The report indicates that the average non-residential farmland prices in 2022 ranged from €5,564 per acre for poor quality land – up five percent from €5,308 in 2021 – to €11,172 per acre for good quality land – up two percent from €10,962 the previous year. Strong demand from dairy farmers for good quality land is driving the market.
The majority of those surveyed believe there is likely to be an increase in demand from dairy farmers to purchase farmland in 2023.
One point to note however, is that changes to the European Nitrates Directive, particularly measures aimed at protecting water quality, may have an impact on land prices, especially rental prices.
In order to maintain current levels of milk production – and to comply with the directive – many dairy farms will need to either increase their land area or reduce milk production.
The Residential Zoned Land Tax (RZLT) is also coming down the line at an alarming rate, farmers have until May 1 to make a written appeal. Under the new legislation farmers owning currently zoned land face an annual tax bill of 3% of the market value of their zoned land.
This will result in countless numbers of landowners facing crippling tax bills from next year on. It is expected that this new tax may bring forward extra land sales later this year before the tax takes hold.
The IFA (Irish Farmers Association) have this week sought a senior counsel review of the legislation governing the Residential Zoned Land Tax.
What is a Fire Safety Certificate?
By John Healy of Healy Insurances A Fire Safety Certificate is an official document that verifies if a building design submitted as part of an application will, if constructed in […]
By John Healy of Healy Insurances
A Fire Safety Certificate is an official document that verifies if a building design submitted as part of an application will, if constructed in accordance with the plans and specifications approved by the Building Control Authority, comply with the requirements of the Building Regulations.
Fire Safety Certificates are issued by a Building Control Authority. The certificate confirms that the building has adequate escape facilities and that the building is designed in a way that prevents and limits the spread of fire. While all buildings must comply with the fire regulations, not all buildings will need a Fire Safety Certificate.
Which developments require a Fire Safety Certificate?
The Building Control Act (1990 & 2007) specifies the development types that require Fire Safety Certificates:
· Works in connection with the design and construction of a new building
· Works in connection with the material alteration of a day centre, a building containing a flat, a hotel, hostel or guest building, an institutional building, a place of assembly, a shopping centre
· Works in connection with the material alteration of a shop, office or industrial building where additional floor area is being provided within the existing building or where the building is being sub-divided into a number of units for separate occupancy
· Works in connection with the extension of a building by more than 25 square metres
· A building as regards which a material change of use takes place.
Some developments are exempted from requiring a Fire Certificate and can include:
· Certain single storey agricultural buildings
· A building used as a dwelling (other than a flat)
· A single storey domestic garage
· A single storey building ancillary to a dwelling which is used exclusively for recreational or storage purposes or the keeping of plants, birds or animals for domestic purposes and is not used for any trade or business or for human habitation
· Works in connection with a Garda station, a courthouse, a barracks and certain government buildings.
If a building is inspected by a member of the building control authority and it transpired that no Fire Safety Certificate is in place, the building could be subject to closure. For more information see www.kerrycoco.ie/home3/building-control/firesafetycerts.
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