Currently, up to one in four households with a mortgage is faced with negative equity. At the same time, one in seven is coping with unemployment. It is likely, then, that there are in the region of 20,000 homes faced with both negative equity and unemployment. If the Live Register reaches 500,000 and house prices fall another 25% in the next year, this figure could treble to 3.5% of all households.
Irish households hit by both unemployment and negative equity
This post uses Census and CSO data to estimate how many mortgage-holders in each county are faced with ‘unexpected unemployment’. Nationwide, almost 7% of mortgage holders are dealing with unemployment, a figure that could rise to 10% if the Live Register hits 500,000. Louth in particular and Leinster more generally are the worst affected areas.
Unemployment among mortgage-holders in Ireland by county
Ireland’s property market is currently in rewind. Homes now are at March 2005 values – or July 2004, if asking prices are 10% above closing prices. Figures from daft.ie, the Census and the Dept of the Environment allow an estimate of both the number of homes now worth less than when they were bought – about 725,000, or 40% of homes – and how many of those are in negative equity -about 340,000, or 20% of homes.
