Dublin commuters may risk negative equity 

Homeowners in parts of the Dublin commuter belt are now at risk of negative equity according a new report.

Houses in danger of losing value are those on the periphery of the greater dublin area or away from public transport routes.

The study, commissioned by the Society of Chartered Surveyors, found that there are people working in the Dublin area commuting as much as 100 km from neighbouring counties. 

The report says there is a demand from people who bought homes outside Dublin to move back towards the centre, with areas like Dundrum, which are closer to the city centre and on a public transport route, are seeing big population increases.

However, some areas a little further out in the Dublin suburbs such as Templeogue, Ballinteer, Tallaght and Blanchardstown are seeing decreases in population.

Conor Hogan of the Society of Chartered Surveyors said that people who are working in the Greater Dublin area are commuting from as far west as Portlaoise, up to the border in Newry,  from Offaly and Westmeath and from as far south as Gorey in Wexford.

He said those at greatest risk of negative equity would be those taking out a 100% mortgage on houses requiring a two and a half hour drive from Dublin.

Dr Brendan William of UCD who carried out the study said Dublin needs suburban renewal with public transport projects completed as quickly as possible.

The report found that increased supply levels would continue to be necessary in Dublin, and strong underlying demand was likely to maintain momentum up to 2009.

Around 18,000 homes were built in the Dublin area last year, but almost half were in Fingal. The study said the lack of suitable zoned land would remain a problem and called for a de-politicising of the zoning process.