Large savings among 18-34-year-olds since the start of the pandemic could go into the housing market, according to a leading economist.

A newly compiled Red C poll for The Journal has found that 66 per cent of people in that cohort said they saved money throughout the pandemic.

The figures align themselves neatly with recent Central Bank of Ireland statistics revealing that in the 12 months to the end of January 2021, Irish household deposits had grown by 13.5% to a record €126.5 billion.

This uptick will lead to house price inflation by way of the government's shared equity scheme, according to TU Dublin Housing lecturer Dr Lorcan Sirr.

And while Sirr believes many people will be priced out of new homes, it shouldn't stop them from buying:

"Look at places, property and house types you maybe haven't considered before," he suggested.

"A lot of young people and first-time buyers like the idea of a new house because it's fresh and it's clean and everything should work in it, but there are great opportunities to be had in secondhand housing."

The poll also revealed that 68% of parents say their outgoings have increased since the start of the pandemic, 22% of people say they have lost income as a result of the pandemic and 65% who say that their income has remained the same.

Research Professor Kieran McQuinn from the Economic and Social Research Institute (ESRI) thinks the economy won't be left too far behind as restrictions ease:

"Our expectation is that you would have quite a significant bounceback in consumption, so we would see a lot of that savings money going back into the consumption of goods and services, aiding the sectors of the economy that have been most affected by the lockdown.

"I think it's fair to say that a certain amount of that money saved will make its way back to the economy."

Main image credit: Leah Farrell / RollingNews.ie