Pat Davitt, Chief Executive of IPAV, the Institute of Professional Auctioneers & Valuers.

Inflation likely to abate towards year end – IPAV

The Institute of Professional Auctioneers & Valuers (IPAV) has said the double-digit growth across 15 of the 20 market cohorts captured is likely to abate somewhat towards the end of the year.

Pat Davitt, IPAV chief executive, was responding to the CSO Residential Property Price Index for August, published last week, which showed that residential property prices had increased by almost 11% nationwide in the year to August.

He said, increasing supply, although far from sufficient, is now tapering the high level of growth seen in recent times.

“However, special properties and those in coastal regions are likely to continue to command strong prices. This is evident with a 15.3% increase in the South East in last week's figures,” remarked Mr Davitt.

And he said Bord Pleanála’s decision to insist that two developments, in Dublin and Galway, were to be reserved for individual buyers over institutional investors is to be welcomed.

“Institutional investors have a place in the market but this decision brings a greater balance to the equation enabling individual buyers compete in a market with a deep shortage of supply,” he said.

However, he said there were still “major impediments” in the way of building more affordable homes.

'Missed opportunity' in Budget 2022

“It is disappointing we did not see any move in last week’s Budget to reduce the 13.5% VAT rate on new housing for owner-occupiers or extend the Help-to-Buy scheme to include second-hand homes. This was a missed opportunity,” he said.

Mr Davitt said issues with planning, taxation, the supply of services are delaying the delivery of housing and increasing the cost of delivery. There needs to be a fundamental re-appraisal of these issues to address the supply side problems in the market.