Kildare person needs to save for over 7 years to get deposit for house in county - survey
A survey has placed Kildare at No 26 on a list of 31 most expensive counties and regions to buy a house.
It would also take a solo Kildare buyer 7.5 years to save a 10% deposit for an average home.
Leitrim was the cheapest with Dun Laoghaire the most expensive, according to the research by switcher.ie.
Although the average asking price of Irish homes has decreased, first time buyer mortgages remain at historically high levels with approvals in February valued at €528 million and 11,000 applications for the Help to Buy scheme in the year to date.
Switcher.ie’s Affordability Index reveals the most affordable areas for sole and joint buyers separately, and compares house prices vs salary, how much deposit is needed and how many years it will take to save for a deposit in each area.
Top 5 most affordable
Leitrim captured the top spot as the most affordable place for both joint and sole first time buyers. With some of the cheapest house prices in Ireland, it would take just 18 months to save the minimum 10% deposit - even as a sole buyer.
The research showed that the most affordable places for first time buyers were not necessarily in the areas with the lowest house prices. Although cheaper property prices help, having a comparably higher income makes your mortgage more affordable and deposits take less time to save.
Sole buyers
Leitrim, Longford, Donegal, Roscommon and Sligo are the top 5 most affordable places for sole buyers.
Leitrim
Years to save for a deposit: 1.5
Income to house price: 34%
Longford
Years to save for a deposit: 2
Income to house price: 26.5%
Donegal
Years to save for a deposit: 1.9
Income to house price: 27.7%
Roscommon
Income to house price: 26.6%
Sligo
Years to save for a deposit: 1.6
Income to house price: 32.6%
Joint buyers
Leitrim, Donegal, Longford, Mayo and Roscommon are the top 5 most affordable places for joint buyers.
Years to save for a deposit: 1.1
Income to house price: 46.8%
Donegal
Years to save for a deposit: 1.2
Income to house price: 42.4%
Years to save for a deposit: 1.4
Income to house price: 38.5%
Mayo
Income to house price: 42.1%
Years to save for a deposit: 1.3
Income to house price: 39.9%
Top 5 least affordable
Unsurprisingly, areas in Dublin were the most out of reach for sole and joint buyers, with Dún Laoghaire earning the title as least affordable place for both types of buyers.
If buying alone, it would take an eye-watering 20 years to save for a deposit for a home in Dún Laoghaire, and 14 years for a home in Wicklow.
Sole Buyers
Dún Laoghaire, Dublin city, Wicklow, Fingal and South Dublin are the 5 least affordable places for sole buyers.
Dún Laoghaire
Years to save for a deposit: 19.5
Income to house price: 12.9%
Dublin City
Years to save for a deposit: 8.1
Income to house price: 18.1%
Wicklow
Years to save for a deposit: 13.8
Income to house price: 15.1%
Fingal
Years to save for a deposit: 9.9
Income to house price: 17%
South Dublin
Years to save for a deposit: 7.9
Income to house price: 18.2%
Joint Buyers
Dún Laoghaire, Dublin city, Wicklow, South Dublin and Fingal are the 5 least affordable places for joint buyers.
Years to save for a deposit: 3.9
Income to house price: 21.1%
Years to save for a deposit: 2.1
Income to house price: 24.9%
Years to save for a deposit: 2.3
Income to house price: 22.6%
4. South Dublin
Years to save for a deposit: 2.2
Income to house price: 24%
5. Fingal
Income to house price: 24.4%
Commercial Director of Switcher.ie, Eoin Clarke comments:
“A drop in asking prices in the first three months of 2023 was welcome news for house hunters, but first time buyer mortgage activity is at historically high levels, with approvals valued at €528 million for February alone.
The Switcher.ie affordability index can help anyone who wants to get a foothold on the property ladder. It considers both sole and joint buyers, the median salary in the locality vs the cost of the home and how long it might take to save for a deposit.”
“Midland counties Leitrim and Longford were listed among the most affordable, while coastal regions of Mayo and Sligo also earned their place in the top ten, due to the higher salaries on offer.
Unsurprisingly, areas in Dublin were least affordable for both types of buyers. For those considering a house in the capital, buying with someone else can improve lending limits and significantly reduce the time it takes to save for a deposit.”
“As remote working takes a firm hold, these more affordable, rural locations could become increasingly popular for young families and couples buying their first home.”
"To maximise their chances of mortgage approval, first-time buyers should take time to understand how mortgages work and what steps to take to get on the housing ladder. A mortgage broker can help buyers find the right home loan and guide them through the application process."