I don’t think the Evergrande situation in China is a red flag. So a radical change won’t happen in the next five years. For 50 years successive governments have talked about fixing the housing market, and for 50 years they’ve failed. I also don’t think government policy will fix the situation. If house prices fell tomorrow by 10pc then you would have every semi-professional landlord in the world buying them up. They might get cheaper in the long run but not in the short to medium term - and that is where most of us live. So if price is your ‘pinch point’, then you definitely should buy now - if you need it and can afford to. House prices will not get any cheaper in the medium term. You asked me a question: what could cause house prices to fall? It’s ve ry simply that.” Brian Lucey
And that has happened many, many times in the past 800 years.
“All it would take for house prices to collapse here is for institutional investors to find better rates of return elsewhere. Over time, other market forces could lead to a big drop in prices, he warned. He said there will be significant policy changes that will negatively affect those who treat residential property as a financial asset. Kinsella cautions against investors buying to “flip” the property. And if the person has built up a strong deposit and wants to live in the property for 10 years or more.” When asked if a Sinn Féin government would reduce prices, he said: “Not based on the policies I’ve seen.” He suggested that Sinn Féin policies such as abolishing property tax and reducing carbon taxes would further increase prices by making house-building more expensive.Īsked if would-be home-owners should buy now, despite prices rising by another 9pc in the past year, he said: “Yes, it is a good time if you can afford it. “The objective of almost all government policy is to keep house prices high so I would be very interested in a simple question put to every TD: would you like house prices to go up, stay steady or fall in your area?”
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