The University of Dublin | Trinity College -- Ollscoil Átha Cliath | Coláiste na Tríonóide
Trinity's Access to Research Archive
Home :: Log In :: Submit :: Alerts ::

Economic and Social Review >
Economic and Social Review Archive: Complete Collection 1969- >

Please use this identifier to cite or link to this item:

Title: Negative equity in the Irish housing market
Author: Duffy, David
Keywords: Negative equity
Housing market
House prices
Issue Date: 2010
Publisher: Economic & Social Research Institute
Citation: Duffy, David. 'Negative equity in the Irish housing market'. - Economic & Social Review, Vol. 41, No. 1, Spring, 2010, pp. 109–132, Dublin: Economic & Social Research Institute
Abstract: Having peaked in early 2007 Irish house prices have fallen steadily. Negative equity occurs if house price falls result in the house value being lower than the outstanding debt. Many in negative equity will be unaffected and will continue to pay their mortgage without difficulty. Negative equity can increase the probability of defaulting if it occurs at the same time as cashflow problems, possibly caused by illness or job loss. This paper estimates that 116,000 borrowers were in negative equity at the end of 2009, rising to 196,000 borrowers by end-2010. Borrowing at, or close to the price peak, high loan-to-value ratios, interest only mortgages and longer mortgage terms have contributed to higher numbers in negative equity. First-time buyers are more likely to be experiencing negative equity. The research shows that many of those who have mortgages are employed in sectors where employment prospects, to date, remain relatively robust. Policies that assist households overcome a loss in income may help lower the default rate.
Description: Policy paper
ISSN: 00129984
Appears in Collections:The Economic and Social Review, Vol. 41, No. 1, Spring, 2010
Economic and Social Review Archive: Complete Collection 1969-

Files in This Item:

File Description SizeFormat
06-Duffy.pdfPublished (publisher's copy) - Peer Reviewed884.04 kBAdobe PDFView/Open

This item is protected by original copyright

Please note: There is a known bug in some browsers that causes an error when a user tries to view large pdf file within the browser window. If you receive the message "The file is damaged and could not be repaired", please try one of the solutions linked below based on the browser you are using.

Items in TARA are protected by copyright, with all rights reserved, unless otherwise indicated.


Valid XHTML 1.0! DSpace Software Copyright © 2002-2010  Duraspace - Feedback