|
|
The Other View |
||
|
Issue No.2 Autumn 2000 Ulster Says Invest By Eugene Byrne Following David Trimble’s narrow victory, allowing him to re-enter the Stormont Executive he chose for the press conference afterwards a backdrop of working cranes thus symbolising Belfast growing economic prosperity. The cranes epitomised the expansion and economic development that people are experiencing since the cease-fires and the implementation of the Good Friday Agreement. Belfast’s environs, for so long treated as no-go areas in regards to property developers and major investment of any kind now appear to be enjoying an economic boom which in turn appears to be a spin-off from the current peace process. Peace and stability brings many dividends and has provided incentives for many emigrants to return from Britain, Canada and America. Many have prospered while in exile and return with an eye for investment locally. Housing developments are one of the most lucrative markets. House prices have doubled or more. Homeowners who sold before the cease-fire are now regrettably counting their losses. While civil and political stability influences the property market and house prices in general they are not the only factor in the equation. A recovering market in Britain has spill-over effects in Ireland, particularly in the North. This has facilitated and encouraged southern investors to make property acquisitions, mainly in Belfast and Derry, during the early stages of the peace process. It was an issue highlighted recently on a special feature of the BBC’s Spotlight programme. It was alleged that southern investors were buying houses in working class areas that have been at the interface of the conflict since the beginning of the Troubles. Southern investors are also eager to buy reasonably priced properties in a sterling zone as a buffer against failings in the Euro. This surge of southern based spending had a knock-on effect which in turn generated confidence among local investors. A worrying aspect of this input is that house prices may spiral out of control thus leaving it virtually impossible for first-time buyers to obtain a mortgage. The average price for a house in Dublin is around 130,000. In Wicklow people are prepared to pay exorbitant amounts of up to 200,000 for a site even without outline planning permission. A report published this year by the National Youth Council of Ireland concluded that 30% of young people in the south have given up all hopes of buying their own home. Of those interviewed, 85% who were living in rented accommodation expected to remain in that sector for the foreseeable future. The Celtic Tiger economy has benefited landowners, property developers, builders, estate agents, etc., leaving local potential house buyers facing prices that are well beyond their income. In a recent television interview the Taoiseach said that half a million houses would have to be built in the next decade to satisfy current demands. This is a problem, which could spread nation-wide as hungry property developers seize on opportunities to profit from Belfast’s emerging economic boom. Already there is an upturn in the averaging house prices in Belfast, up to 19.7% to 75,704 from 1998-1999. This trend is expected to continue well into the future. Derry is one of the cheapest places to buy a new home in Ireland. With such a demand for affordable houses in neighbouring Donegal, this will surely not be the case any longer. |
|||
|
|
|||