The Republic of Ireland experienced a pronounced asset bubble in the residential property market between 2000 and 2006, with large increases in housing supply and demand accompanied by an increase of 46% in new house prices. These trends exhibit a clear geography, with the largest increases evident in the periphery of the Dublin City region. Those purchasing units at the height of the bubble, utilising increased mortgage leverage and flexible mortgage products are more likely to experience precarious mortgage burdens in the crash. Since 2007, declines in income and employment have occurred as a result of the downturn in the wider economy, and are interacting with unsustainable mortgage debt and substantial house price declines to produce a serious mortgage burden problem. This paper focuses on the consequences of the bust in the residential property market for recent house purchasers in the Dublin Region, including negative equity, mortgage arrears and housing repossessions. It also outlines the policy responses thus far from Government for indebted households, including the introduction of a Code of Conduct on Mortgage Arrears for mortgage lenders and the establishment of an Advisory Group on Mortgage Arrears and Personal Debt. The paper suggests topics for further research, including a greater analysis of the coping strategies employed by households with large mortgage debt and mortgage forbearance practices by lenders.
|Publication status||Published - 2011|
|Event||Housing Studies Association Conference: Housing in Hard Times: Class, Poverty and Social Exclusion - University of York, York, United Kingdom|
Duration: 13 Apr 2011 → 15 Apr 2011
|Conference||Housing Studies Association Conference|
|Period||13/04/2011 → 15/04/2011|