Ms Francesca McDonagh:

There would be examples, but the average in Dublin, according to our data is that figure. Obviously, it is lower outside of Dublin. To earn the sort of income where that is one third of take home pay would suggest that is unaffordable for the average teacher, nurse or many young people who have got their first job.

The Deputy asked whether the larger funds or institutions buying property were pushing out regular individual private home buyers from the market. There were 57,000 homes purchased in 2018. We often refer to the number of new build homes, which was 18,000, but in terms of the homes which were purchased, the secondary market was 57,000. We estimate that around 15% were from the larger big investors to which the Deputy referred.

On supply and demand, we are seeing the supply come through, even though it is not keeping up with the demand. The demand for new homes in Ireland is around 35,000 to 40,000 per annum. The supply has increased from 15,000 in 2017, as Mr. Kelly noted, to 18,000 last year and the market consensus is that this year will be about 23,000 and 27,000 in 2020. That increased supply has meant that price increases have reduced or softened slightly. At the beginning of 2018 there was double-digit price increases in the residential property market. That increase is still positive but is beginning to fall as supply comes on stream. The macroprudential rules are also having their intended effect of slowing down demand. The outlook for price this year is an increase of about 4% to 5%. That has been more subdued than it was previously as supply increases.