Report reveals lack of transparency in bidding system is hurting Irish property sales

A new report highlights the impact of transparency issues in the bidding system on property sales in Ireland. Significant findings indicate that a lack of clear information is hampering home transactions and depressing sales.

Lack of Transparency Hurting Irish Property Sales

According to the report, only 61,000 properties were sold in the Republic last year. This figure represents roughly 2.8 percent of all houses, significantly lower than the historical average of 4.2 percent from 2013 to 2022. In contrast, the UK had a 3.6 percent sales rate during the same period.

Key Insights from the Report

The report titled “Improving Ireland’s Homebuying Process,” released by MyHome and Bank of Ireland, attributes these low figures to an opaque property buying process. Conall Mac Coille, Bank of Ireland’s chief economist, emphasized that not only is there a housing shortage, but the complexities of the buying and selling process are also discouraging transactions.

• Opaque Bidding Process: Homebuyers feel uncertain about the bidding process, suspecting they may be bidding against themselves.
• Price Discrepancies: About one in seven homes sell for at least 20 percent above the initial asking price, particularly in the €250,000 to €500,000 range.
• Low Engagement: Only 9,000 mortgage-holding homeowners moved last year, constituting a mere 0.4 percent of the total.

Buyers’ Perceptions

Recent studies by the Competition and Consumer Protection Commission reveal that only 16 percent of buyers consider the housing market transparent. Many buyers find the information provided by estate agents to be misleading or inadequate.

Recommendations for Improvement

The report recommends several measures to enhance transparency in the Irish property market:

• Sellers should be mandated to verify their title deeds and tax status before listing a property.
• The establishment of a professional conveyancing sector to tackle legal issues in property sales.
• Standardized information on property listings to aid buyers in making informed decisions.
• Encouragement for estate agents to adopt transparent online bidding platforms.

Joanne Geary, managing director of MyHome, advocates for full transparency in the bidding process. She states that close to half of residential transactions now occur on platforms featuring online bids, which fosters greater transparency and helps buyers understand the competitive landscape.

Conclusion

The findings reveal a pressing need for reform in Ireland’s property market. Implementing transparent systems can boost buyer confidence and facilitate smoother transactions. Addressing these issues is vital for revitalizing the Irish real estate sector.