First-time buyers face waits of up to four years to save deposits

Buyers have been hit by a double squeeze, paying rents and saving to meet Central Bank rules...

New research from the Central Bank shows that first time buyers need to save for four years to buy a three bedroom house in South Dublin.

The period of time needed to raise the funds needed to satisfy Ireland's controversial mortgage deposit rules fluctuate widely around the country.

Estimates for the six regions in Dublin range from two and a half - to four years.

In urban areas such as Galway and Cork and the Dublin Commuter Counties total saving time is estimated at closer to 18 months, while in other non-urban areas saving time is less than one year according to the research.

South Dublin is a clear outlier in the data - the down payment needed to get a mortgage for a three bedroom property has increased from €35,000 to €76,000 in the past two years.

Increases of between €10,000 and €22,000 have been observed in other areas across the capital.

The report factors in rapid rises in rents across Ireland since 2013. It notes that these increases come while housing supply has reduced and household income has increased at a slow pace.

According to the CSO rent is the biggest single component of renters' monthly-outgoings, accounting for 26%.

The Central Bank rules dictate that potential first time buyers must provide a minimum down-payment of 10% of the first €220,000 and 20% of the purchase amount over €220,000 when purchasing a home with mortgage finance.