By Michelle McGlynn
Over 40% of first-time buyers in the Dublin commuter belt area are buying outside of their home county.
According to the Banking and Payments Federation, more than three quarters of people buying in the counties surrounding the capital are moving from Dublin.
The latest Housing Market Monitor shows that average house prices are continuing to increase particularly in the capital.
The figures come as the Central Bank yesterday decided not to make any changes to mortgage lending rules which limit the amount people can borrow.
The report shows that Irish mortgage activity has more than tripled between 2011 and 2018.
Mortgage approval volumes rose by 9% year-on-year in the third quarter of this year while mortgage drawdown volumes grew by 8.5%.
According to the figures, 41% of first-time buyer mortgages in the Dublin commuter belt involve buyers moving county.
77% of first-time buyers moving county to buy property in the Dublin commuter belt are from Dublin.
Economist Ali Uğur says the commuter belt 'drift' puts pressure on amenities in counties such as Louth, Meath, Kildare and Wicklow.
"Housing is just one component of the overall infrastructure and once you put in housing you need to put in the transport, you need to put in the education," said Mr Uğur.
Mr Uğur explained that despite stabilising house prices and encouraging signs in relation to housing supply, first-time buyers are still facing affordability challenges which are placing "serious limitations" on where they can afford to buy - especially in Dublin.
"Regional mobility perhaps shows the flexibility of the workforce in the Irish economy, however it should be noted that the pattern of more residential housing activity taking place in the Dublin Commuter belt is likely to put pressure on the infrastructural needs in these areas, which is likely to have a negative impact on the overall competitiveness of the Irish economy," said Mr Uğur.
"In addition, price developments are seriously limiting potential buyers’ preference, particularly FTBs, to live in areas closer to where they work or currently live, as average income levels of this cohort of potential customers are affected by the macroprudential framework in place for mortgage lending taking into account average price levels, particularly in Dublin.”
