Results of a survey conducted by RSM in the Republic of Ireland and Northern Ireland suggests that renters and home owners in the Republic of Ireland feel they are facing a greater degree of uncertainty across the board, than their counterparts in Northern Ireland.
While almost twice as many (61%) of homeowners surveyed in the Republic of Ireland said they expected the value of their home to increase significantly over the next few years, compared with 33% in Northern Ireland, 61% of homeowners surveyed in the Republic of Ireland also expressed concern about the risk of a housing downturn in the future, compared with 37% in Northern Ireland.
Mortgage rates are also causing more concern in the Republic with 53% of those surveyed saying they are worried about increases in interest rates, compared with 36% in the Northern Ireland. Twenty nine percent of homeowners in the Republic reported as being in negative equity, compared with 17% in Northern Ireland.
Of those surveyed, adults in Northern Ireland are more likely than those in ROI to be home owners, with 52% of those surveyed in Northern Ireland reporting to be homeowners, compared with 38% in the Republic of Ireland.
There is agreement on the issue of affordability, however, with 72% of renters in ROI and 60% in NI saying they would like to buy a home, but the cost of buying is a significant barrier to them.
Commenting on the findings, Construction Lead at RSM, Paddy O’ Connell said, "The results of the survey verify what many already know to be true, which is that people are feeling uncertain about their circumstances in the Republic of Ireland, whether they are renting or homeowners. While respondents in the Republic of Ireland are more concerned about a downturn, this is likely to be as a result of their past experiences."
He added, "Respondents also have expectations that the value of their homes is going to continue at the pace that it has, which in itself is creating a block in activity. These issues are fuelled by the ongoing mismatch between supply and demand that is causing issues in the market."