Housing crisis Ireland: Half of 18 to 34-year-olds fear they won’t be able to buy home in next 10 years

Many people who want to buy their own home are pessimistic about their prospects of being able to purchase any time soon.

New research undertaken by Behaviour and Attitudes for business group Ibec also shows there is strong support among the public for Government measures to improve the supply of affordable homes.

Many expect to have to put off their dream of owning their own home for years due to the housing crisis.

The new survey comes as builders claim that rising timber prices and issues with supply due to Covid-19 as well as Brexit could push up the price of new homes by up to €15,000 this year.

The research found that half of 18- to 34-year-olds expect it to take between three and 10 years before they are able to buy a home.

In addition, 16pc of respondents believe that they will not be able to borrow sufficient funds from a bank, while eight out of 10 believe government should do more to make homes affordable.

Half of younger people who want to buy would consider moving to rural areas as they consider it would be easier to buy in the country. The research also found strong pent-up demand for housing.

A third of the survey respondents said that they would like to buy a home within the next two years but just half of those expect to be able to achieve that ambition.

This indicates that many aspiring buyers expect it will be a long time before they ever become a homeowner.

The results of the Ibec-commissioned research confirm that the housing crisis continues to dominate public thinking, with supply shortages exacerbated by the pandemic.

Housing Minister Darragh O’Brien announced a range of measures in the past few weeks to make housing more affordable.

The survey found that 56pc of respondents are in favour of the controversial shared equity scheme, which would see the State taking a stake in new homes to make them more affordable for middle-income earners.

A third expressed some interest in availing of such a scheme.

When the ‘don’t knows’ were excluded, three out of four respondents were supportive of the shared-equity scheme.

Nearly one-third of renters see mortgage approval as a barrier to purchasing.

The survey also found that Covid-19 has resulted in an increased importance of having a garden or outdoor space.

Ibec director of lobbying Fergal O’Brien said: “A renewed national effort is required to address the housing issues which are now undermining the quality of life for so many people in Ireland.”

Meanwhile, rising timber prices and supply issues created by Covid-19 and Brexit could push up the price of new homes by up to €15,000 a year, builders claim.

The Irish Home Builders’ Association (IHBA) says the average three-bed semi-detached house of around 95sq/m (1,022 sq/ft) could see a product inflation range of between €12,000 and €15,000 by the end of this year.

Builders say there have been large delays on bricks coming from Britain because of Brexit, with congestion in customs and ports.

Director of the IHBA James Benson said: “This cost increase is putting further pressure on the supply of new homes and could potentially lock even more people out of the market.”

He said the increased costs will have to be taken on by either the buyer or the builder.