Having A Baby Now Comes Before Owning A Home

According to a survey of the Irish property market, the average age of first-time buyers has risen from 29 to 33. Having a baby must come before owning a home for a new generation that has little choice but to rent until their mid-thirties. This huge change indicates that for the first time in generations, more Irish couples are now starting their families in rental accommodation- a social shift which goes against the longstanding Irish tradition of buying your home first. In 2005, the average first-time buyer in Ireland was about 29, but according to Real Estate Alliance (REA), this figure is up and still rising. Meanwhile, HSE statistics show that the average age of an Irish woman having a first child now stands at 32.1 years.And the REA predicts that the age of first-home ownership will rise sharply again over the next few years. Over the past two years, average property values have increased at a faster pace than average wage levels, therefore the whole area of affordability has become a factor. "The introduction of the Central Bank's mortgage deposit requirements, combined with higher rents, has made it increasingly difficult for young people to save up their deposits, especially in Dublin," said the organisation's CEO Philip Farrell. Another issue for young purchasers is getting adequate access to finance. The new income requirements of 3.5 times salary, combined with increased deposits introduced by the Central Bank this year, will continue to exert pressure. Agents are also reporting that young people are also being forced to reapply for finance due to mortgage offers expiring as a result of sales falling through when they are part of a selling chain. Mr Farrell added: "Up to recently, a large percentage of banks and receivers sales were falling through due to issues such as title, which meant that young people were having to return to the issuing bank for reapproval. This may not be related to the property in question, but often to the next house in the chain and this has been a source of heartbreak for many potential buyers."