Househunting solo?

First-time buyers in Cork face the toughest affordability challenge in Munster, with new analysis showing a single applicant would need to earn €82,837 to qualify under Central Bank mortgage rules.

That compares with Cork’s median income of €44,348, leaving an income shortfall of €38,489.

According to research by Chill Insurance which compared median first-time-buyer home prices in every county with median local incomes, applying Central Bank limits of 90% loan-to-value and a maximum loan of four times gross income, no county in Ireland is affordable for a single buyer on the national median salary of €43,221.

In Cork, the median first-time-buyer home price now stands at €368,166, giving the county the highest salary requirement in Munster. Nationally, Cork ranks sixth least affordable.

The affordability gap in Cork:
• Median price for first-time-buyer home: €368,166
• Median Cork income: €44,348
• Salary required under mortgage rules: €82,837
• Income shortfall: €38,489

“Cork highlights the dilemma many first-time buyers face.” says Ian O’Reilly, Head of Personal Lines Sales at Chill.

“Even in counties with relatively high local incomes, the gap between earnings and what’s required under the lending rules is still significant.

“In most cases, bridging that gap means securing a mortgage exemption, buying with another person or considering state-backed options such as the First Home Scheme.” he added.