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 and Private tenure in LCCC in line with State average (CSO, 2016)

VOLUME OF SALES IN LIMERICK CITY + COUNTY 
 Average Volume of Sales for 2018: 180 (257 sales in May 2018) 310 257 Upward Trend 159 57

VALUE OF SALES IN LIMERICK CITY + COUNTY 
 Average Value of Sales for 2018: € 31m ( € 41m in August 2018) € 41.1m € 40.5m € 32.7m Upward Trend € 21.7m € 5.3m

NEW-BUILD RESIDENTIAL COMPLETIONS IN LIMERICK CITY 
 AND COUNTY FROM 2011 TO 2018 (Source: DHPLG) Upward Trend

AVERAGE HOUSE PRICE + RENT PRICE IN LIMERICK CITY 


New Developments in Limerick City as at 08 Jan 2019 (Source: Myhome/Daft) Walker's Road 3-bed: € 259,950 Old Schoolhouse 3-bed: € 269,000 Templeville 4-bed: € 320,000 Ros Mor 3-bed: € 235,000 Fr Russell Road 3-bed: € Price not available yet Sli Na Manach 3-bed: € 287,500 The Grange, Raheen 3-bed: € 270,000 Average new 3-bed: € 271,613 (note: this aligns to median price point for Jan-October 2018)

NEW BUILD

RENTAL 
 (Now far exceeds the Daft average for Limerick city)

The Affordability Challenge

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

Enabling Affordable Housing

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?