Hogan raises concern over income needed to buy first home

Independent Ireland Councillor Paul Hogan has expressed serious concern at the growing gap between local wages and the income now required for a single first-time buyer to purchase a typical home in Westmeath.

New research by Chill Insurance reveals that a single first-time buyer in Westmeath needs to be earning approximately €76,000 a year to secure a mortgage for a typical first home.

This figure, Cllr Hogan said, is a stark illustration of the pressure facing young people and working households who are trying to get onto the property ladder.

“These figures should be a wake-up call for Government. We are now in a situation where a person can have a good, secure job in Westmeath and still be unable to buy a home in the community where they live and work.

“The question we have to ask is: how can we expect young people to remain in Westmeath, build their lives here and contribute to our communities when the income required to buy a home is so far beyond what many ordinary workers earn?," Cllr Hogan said.

According to the Chill Insurance research, the average cost of a first time buyer home in Westmeath is €340,000.

To that end, a single first-time buyer in Westmeath now needs to earn €76,500 to buy a home. That is more than the county's median income of €43,072, leaving a gap of €33,428 between what people earn and what they require for a deposit on a home.

“A €76,000 salary is a very significant income for a single person. For many first-time buyers, the problem isn't a lack of willingness to work or save. It is that house prices have moved far beyond the reach of normal earnings," Cllr Hogan added.

Under the Central Bank's mortgage rules, first-time buyers can generally borrow up to four times their gross income and must provide a minimum 10% deposit. This means that rising property prices directly translate into a much higher income requirement for those attempting to buy on a single salary.

Councillor Hogan said Government must focus on increasing the supply of genuinely affordable homes rather than relying solely on measures that increase buyers' purchasing power.

“We cannot solve a supply problem simply by giving people more ways to borrow. If there aren't enough affordable homes available, additional financial supports risk simply pushing prices higher.

“We need a serious programme of housebuilding, particularly homes that ordinary working people can actually afford. We also need to make much better use of public land and ensure that local authorities are delivering affordable purchase opportunities at the scale required," he continued.

Councillor Hogan said that housing affordability should be treated as an economic and social priority for Westmeath.

“We need to make sure that nurses, teachers, tradespeople, public servants, retail workers, small business employees and other people on ordinary incomes have a realistic pathway to home ownership.

“Owning your own home should not be an exclusive privilege reserved for people on very high salaries or those who can rely on significant financial assistance from their families.

“Westmeath is a great place to live, work and raise a family. We need a housing policy that allows young people to stay here and put down roots. The €76,000 figure shows just how far we are from achieving that goal," Cllr Hogan concluded.