Welcome to the May edition of your Privateseller.ie newsletter

Now that its all over bar the shouting with the general election behind us, the national conversation about house prices which had quietened down in recent weeks, will restart.

Irish house prices have risen by almost 250% more than rents over the last decade, compared with just 100% in Spain, where troubles in the property market have already extended to the wider economy.

Ireland also tops the list of seven countries showing signs of overvaluation. The big question is whether prices will plummet or whether there will be a slow correction, whereby housing price increases fall below the level of inflation.

Earlier this year, the ESRI/ Permanent TSB house price index showed that house prices fell by 0.5% in the first quarter. If the trend were to continue for the full year, house prices will fall by 2% this year. Some economists are predicting more dramatic falls.

It is against this background that a decision was taken last week by estate agents to increase the rate they charge on residential property sales by 50%. The National Consumer Agency criticised the decision which comes following a decade in which house prices increased by an average of 15% pa.

Headline figures from the special 10th Anniversary TSB House Price Index reveal the following:

•    National house prices have increased by 270% over the past ten years – compared to a total rise of just 30% in the consumer price index.

•    The average cost of a house in 1996 was just €75,000.Ten years later (2005) the average cost had increased to €280,000.

•    On average national prices rose by an AVERAGE of 14.9% each year for those ten years.

•    In one year (1998) average national prices grew by a massive 30%.

•    Ten years ago the average difference between buying a house in Dublin or outside of Dublin was just €10,000.Today that figures has grown to some €130,000

Auctioneers Sherry Fitzgerald says it has been obliged to increase its commission in the Dublin area from around 1% to closer to 1.5% because the market has slowed considerably.

The Chief Executive of the National Consumer Agency said the increase could not be justified. As players in a competitive market, auctioneers would be expected to cut their charges when they wish to gain market share during a decline.

Senator Shane Ross' opinion on the latest increase in charges by auctioneers.

It seems that once the dust has settled on the general election, the property market is likely to resume its place at the top of everyone’s list of conversation topics.

In this months Privateseller.ie newsletter, we look at outdoor lighting, both as a security measure and as a way to enhance the external features of your property at night. In a related article we take a brief look at the ways a burglar alarm works, and the advice from Gardai on steps you can take to make your home secure. 'Child's Play' addresses the issue of age appropriate storage solutions for children, and more importantly, How to encourage a tidying habit in children from tots to teens! The Money Doctor, John Lowe answers a question about how to reach that first rung of the housing ladder, on a relatively modest income.

Throw a little light on the subject

If you want to bring out the very best in your garden and add another dimension to your home, this summer, consider your outdoor lighting. Outdoor lighting has become extremely popular as homeowners have discovered that it adds beauty, security and safety to their property. There is something special about having the outside of your home and garden illuminated at night. The right choice of light can gently enhance architectural features and finishes as well as your garden plants.                

How burglar alarms work

Though they protect our homes and belongings, many of us don't understand how burglar alarms work. There is a huge variety in alarm systems, from do-it-yourself kits to whole-house wired systems. But most alarms work on the same basic principles.              

Keep burglars in the dark

We've all familiar with stories about ideal little villages where people leave their doors unlatched or the house key on a string, or we read about them and have a good old nostalgic chuckle, taking comfort that those who would take our hard earned possessions have not yet reached all back yards.

But we're wrong! The cold truth is that every day homes are broken into and precious possessions are stolen. If you are ever tempted to 'hide' a spare key 'just in case' you lock yourself out, read on for some good advice on how to burglar proof your property.                   

Child's play

Keeping a child's room tidy can seem like a never ending struggle. Things you put away quickly end up in a pile on the floor. Many people just want to be able to walk through the house without stepping on Barbie shoes, toy soldiers, and tired old sandwiches. But your children do not learn valuable organizing skills when you simply straighten their rooms for them. The trick to helping your little one get organized is to involve them in the process -- organizing WITH them rather than FOR them. This means working together, explaining the logic behind the systems you set up, and letting them help decide where things are stored.          

The Money Doctor - Affordable Housing

Can you let me know what are the criteria to be considered for affordable housing. Also please let me know if my salary of €38,000 would qualify in the first place and my options outside of affordable homes. I am a single female and live in Dublin. Thanks, Clodagh          

Sherry Fitzgerald's increase in fees

Sherry Fitzgerald’s increase in commission rates by 50% to 1 1/2% recently has incurred the wrath of consumer advocates and sellers alike. Fiona Mcloughlin of Privateseller.ie was invited on TV3 ‘s main evening news to give her comment.