A property boom is in full swing in Ireland and it is all due to the arrival of Brexit.
The Irish real estate market is up 12.6 per cent year-on-year, with demand up 5.9 per cent, according to the latest figures from the National Land Survey.
The country has seen a record growth in demand for properties.
The National Land Surveys is a national data base that gathers information on real estate activity across Ireland.
It provides information on home prices, rent, mortgages and other key factors.
The figures for 2017 are preliminary.
The growth is not unprecedented, as Ireland has experienced an annual boom in real estate in recent years.
Last year was the highest since 2006, when a record 8.3 per cent growth was recorded.
A rise of 4.3 percentage points was recorded in the latest National Land survey.
The number of homes being purchased has increased by 1,800 in 2017.
In 2016, the year before Brexit was announced, the number of houses being sold in Ireland was at a record high of 8,914.
Ireland was the only country to sell more than one property in the same year.
The increase in demand is likely to continue.
In 2017, home sales increased by 8 per cent.
This is despite the fact that Irish home sales are expected to be slightly lower than the UK for the second year in a row.
It is not only property that has been sold in 2017, however.
The price of goods and services has also risen.
Irish exports to the UK rose by 7 per cent in 2017 to €1.29 trillion.
Ireland exported a total of €1,093.9 billion in goods and €1 billion in services in 2017 compared to the previous year.
There were also increases in exports to other countries.
In fact, Irish exports in goods to the EU increased by 9 per cent and in services by 8.5 per cent to €2.7 trillion.
Source: National Land surveys – Irish Land Survey (in millions of euro) Source: Office for National Statistics – Irish Trade and Investment Survey (ITIS) – Irish Development Bank (IDB) – National Land (INV) – Regional Growth – National Accounts (NA) – Housing and Planning Agency (HPA) – International Monetary Fund (IMF) – European Commission – European Central Bank (ECB) The data released by the National Surveys are in line with the Government’s policy of reducing taxes and other fees to stimulate the housing market.
The Government’s new “Fair Fares Policy” is expected to have a positive impact on the housing sector.
The “Fair” Fares scheme will allow households and businesses to receive the same rates of income tax, stamp duty and social security contributions as their home counterparts, as long as they are in work and paying their fair share of tax.
These benefits will include: • Help to Buy: the new National Housing Payments will be available to families and small businesses who are unable to meet their own needs through a reduced or reduced mortgage.
• The Home Owners Scheme: for people on lower incomes, the HOPE Plus scheme will be extended to help subsidise rent payments, including rent for new properties.
• Housing Benefit: a new tax on property transactions will be introduced.
This will see a 30 per cent levy on transactions of more than €1m.
• Help for Housing: the Government will introduce the National Housing Assistance Scheme, which will provide additional financial support to people on low incomes and who do not have the ability to pay the tax they pay.
The scheme will include support for those on the lowest incomes.
The total number of households paying property tax in Ireland has increased from 4.9 million in 2017/18 to 5.4 million in 2018/19.
A further 4.6 million households paid property tax last year.