Bank advice reflect grims reality of housing market- O’Sullivan

Labour spokesperson on Housing, Jan O’Sullivan TD, has said yesterday’s online mortgage advice for young people by Bank of Ireland reflects the grim reality of the housing and rental market.

The since deleted tweet promoted the story of how one young couple had to move back home with their parents in order to save for a deposit.

Deputy O’Sullivan said:

“Unfortunately the current state of the housing and rental market means that for many young people trying to buy a house, moving back in with their parents is their only option to save for a deposit.

“Just this week, figures from Daft.ie put rents at a record high for the first six months of the year. It is simply becoming unaffordable for those that actually manage to secure a property to rent, to pay these extortionate prices while trying to save for a deposit at the same time.

“And with supply also at an all-time low, there are warnings that house prices will continue to spiral for the next five to ten years if immediate action isn’t taken.

“Recent CSO figures also showed that nearly half a million adults are still living with their parents, again highlighting this lack of affordability.

“The ill-advised tweet yesterday has understandably annoyed people. While it is great that so many people have the option to remain or indeed move back home, it is a sad state of affairs that this is being recommended by a financial institution as a route to a deposit.

“Bank of Ireland seems to have completely blanked out the central role banks played in the boom-bust cycle that led to the current supply crisis.

“And for those that don’t have the option to live with family, many people and families as we know, are ending up on the streets.

“Government has to address the crucial supply issue and make use of the thousands of vacant properties around the country to begin addressing this crisis.

“But action is also needed in relation to affordable housing, and a glaring omission in Government strategy to date is the complete lack of will to introduce a national Affordable Housing Scheme.”