The Republic of Ireland’s buy-to-let market is on the verge of meltdown due to its landlords favouring UK investments, an Irish broker has warned.
The broker, who wishes to remain anonymous, says intermediaries fear Ireland’s buy-to-let market is wilting because landlords prefer to invest in England.
Land Registry figures show average house prices in England and Wales hit 179,935 in April. Figures from Irish bank Permanent TSB show that average property prices in the Republic of Ireland over the same period reached 306,619, or 207,607.
Peter Ireland, independent mortgage adviser at Park Row Associates, says prices have hit the roof in the Republic, forcing Irish investors to follow the best value deals.
Ireland says: “The Irish buy-to-let market is tilting on its axis because investors can see value in the English market.
“If investors are spending money in England and not over there, this will reduce demand and depress prices in Ireland.”
In response to investors’ appetite, the Bank of Ireland says it is looking at changing its buy-to-let criteria for Irish nationals looking to invest in the English market.
A spokesman for BoI says: “The number of enquires would imply there is a market for Irish nationals buying buy-to-let property in England. Our existing policy is that we will only lend to Irish nationals who have three years’ residency in the UK. However, we’re looking at expanding our criteria.”