What has been the impact of covid-19 on the property industry ?

Impact of COVID-19 on the property industry

The COVID-19 pandemic and its subsequent disruptions have led to more job losses and an erosion of income. This has led to a downswing in the property industry as the number of buyers has dropped significantly, property prices have become unstable, homeowners have become financially incapacitated, and consequently, have compelled  Irish Banks to grant them six months breaks to cushion them against the financial challenges.

House prices stable in February before coronavirus disruption 

Residential property prices showed an upward trend nationally in the year up to February. This period was also characterized by an increase in the number of home buyers. However, the implementation of Covid-19 lockdown restrictions has led to price instability and a drop in house acquisitions as detailed here.

Challenging times ahead as the mortgage market looks set to be impacted by the COVID-19 crisis.

The mortgage market is likely to experience a downswing as a result of shrinkage or loss of income of consumers caused by COVID-19. Consequently, this will see banks making a careful assessment of mortgage approvals to help prospective mortgagors. Click here for more details.

Residential property sales lowest level since 2017

A combination of Brexit uncertainty in late 2019 and the stringent conditions of the COVID-19 has led to a drop in property sales in 2020. Compared to 2017 property sales, the fall in prices has been the lowest. Click here for more details.

Banks may extend mortgage breaks to six months -BPFI

The country’s five retail banks are likely to extend a six-month break on loan repayments so that they can help homeowners cope with financial incapacity caused by the coronavirus. The banks are in discussion with the regulator; the Irish Bank. Click here for more details.

45 000 mortgage breaks granted by Irish Banks

To mitigate the impact of the pandemic, more than 45 000 mortgage breaks have been authorized by Irish Banks. They’re also receiving a considerable number of applications from SMEs for the same financial initiative. Click here for more details.
The emergence of COVID-19 and subsequent lockdown restrictions have harmed the property industry including homeowners and SMEs. Contact us for more information.