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Snapshot of Housing in Limerick *the Affordability Challenge* - - PowerPoint PPT Presentation
Snapshot of Housing in Limerick *the Affordability Challenge* - - PowerPoint PPT Presentation
Snapshot of Housing in Limerick *the Affordability Challenge* Setting the Context CONTEXT: TENURE MIX IN IRELAND Tenure Mix of Social and Private tenure from 1946 to 2016 CONTEXT: TENURE MIX IN LIMERICK Tenure Mix of Social
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CONTEXT: TENURE MIX IN IRELAND
- Tenure Mix of Social and Private tenure from 1946 to 2016
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CONTEXT: TENURE MIX IN LIMERICK
- Tenure Mix of Social and Private tenure in LCCC in line with State average (CSO, 2016)
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257 310 159 57
VOLUME OF SALES IN LIMERICK CITY + COUNTY
Average Volume of Sales for 2018: 180 (257 sales in May 2018) Upward Trend
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VALUE OF SALES IN LIMERICK CITY + COUNTY
Average Value of Sales for 2018: €31m (€41m in August 2018) €41.1m €40.5m €32.7m €5.3m €21.7m Upward Trend
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NEW-BUILD RESIDENTIAL COMPLETIONS IN LIMERICK CITY AND COUNTY FROM 2011 TO 2018 (Source: DHPLG)
Upward Trend
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AVERAGE HOUSE PRICE + RENT PRICE IN LIMERICK CITY
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New Developments in Limerick City as at 08 Jan 2019 (Source: Myhome/Daft)
Sli Na Manach 3-bed:€287,500 The Grange, Raheen 3-bed:€270,000 Fr Russell Road 3-bed:€ Price not available yet Ros Mor 3-bed:€235,000 Walker's Road 3-bed:€259,950 Old Schoolhouse 3-bed:€269,000
Average new 3-bed: €271,613
(note: this aligns to median price point for Jan-October 2018) Templeville 4-bed:€320,000
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NEW BUILD
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RENTAL
(Now far exceeds the Daft average for Limerick city)
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The Affordability Challenge
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Affordability Benchmark (35% of net income)
- Average and median house purchase prices for new-build dwellings and average rental
prices in Limerick city are significant and rising.
- Taking a range of income it is possible to calculate the monthly net income and the
maximum amount of affordable mortgage or rental repayments. Taking into consideration the Central Bank’s macroprudential lending rules and Limerick city’s average purchase price of €290,448 for a new-build dwelling as outlined earlier, the following is required:
- €29,044 (10% deposit)
- Monthly Repayment of €1,452 (applicant 25 year term (4.5% interest)) on remaining
€261,403
- Net incomes of €45,000, €50,000 and €60,000 the affordability challenge for a first time
buyer mortgage is evident in Limerick city
- The average rental price in Limerick of €1151 (as at Q3 2018) outlined in Table 2 exceeds
35% of a base salary of €45,000 and €50,000. Coupled with increasing rent inflation the trend is likely to continue into the future, affecting those with the net income bracket of €60,000
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Enabling Affordable Housing
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ACCELERATING DELIVERY
▪ Awaiting announcement at end of month from Government for Limerick to be included in an Affordable Housing Scheme and a Serviced Site Fund ▪ Collaborating with affordable housing AHBs such as O Cualann ▪ Urban Regeneration Development Fund: Living Georgian City grant approval for to derisk local authority sites and buildings in the Georgian District to deliver affordable housing provision and to pilot a 'land trust' - awaiting signing of grant contract with DHPLG ▪ Masterplanning now to deliver affordable housing in a coordinated manner – Toppin's Field (residentially zoned) to be masterplanned as part of Southside Masterplan – which includes high amenity lands at Ballinacurra Creek and the Baggot Estate ▪ The Self-build and Custom Housebuilding Act 2015 (UK) places a duty on all local authorities in England to keep and have regard to a register of people who are interested in self build or custom build projects in their area. Similar model for Ireland placed on a legislative footing? ▪ Any other suggestions?