As reported by Dan O’Brien in yesterday’s Irish Times, a paper published by the ESRI on the residential property market, based on census data, found large differences in the stock of unoccupied homes in urban and rural areas. The conclusion is that there is likely to an increase in demand to buy houses in urban areas, leading to an increase in prices.
Of greater interest to landlords, is the indication in the report that rents in urban areas will rise as a result of significant net immigration in the period to 2015. Despite what we were led to believe about foreign workers returning home as a result of the downturn and also our own young people leaving Ireland, it appears now that while large numbers of young Irish people emigrated, an even greater number of young foreign nationals came to Ireland, leading to net immigration of 50,000 for the period 2006-2011.
In addition, there has been a dramatic increase in the number of households in private rented accommodation in the 5 years to 2011. This may be as a result of a number of factors, i.e. a move away from the Irish tradition of home-ownership, expectation that house prices will fall further, lack of credit, lack of certainty re employment etc; but the report also concludes that renting is better value than buying, with 32% of households in Dublin city in rented accommodation.
With many landlords being ‘squeezed’ in recent years as a result of falling rental incomes and increased costs as a result of property taxes and other costs, even a small increase in rents has to be good news.
Many landlords will be relieved to read in today’s Irish Times of the Daft report which shows that Rent Costs have levelled out in Ireland.
THE COST of renting residential property in Ireland appears to be levelling out, according to a report by property website Daft.ie.
Rents fell by just over half a per cent last year compared to a 15 per cent drop in 2009 and 10 per cent in 2008. The largest drop, of over 7 per cent, was recorded in Leitrim, which also had the cheapest rentals in the country at an average of €467 a month.
Rents for Kerry dropped 7 per cent to an average of €617 and, while rents in Wicklow dropped by 3 per cent last year, it remained the most expensive place to rent outside the capital, with an average monthly charge of €922.
Dublin city centre saw the largest increase last year going up by almost 3 per cent. The average rent there was €1,134, but it did not top south Co Dublin where the average rent was the most expensive in the country at €1,303. It increased 2.2 per cent last year on 2009.
Rents in north Dublin city fell by more than 2 per cent to an average of €985.
Rents in Offaly were unchanged at an average of €604 a month and in Galway and Cork cities there was very little change, with average rents at €804 and €824, respectively.
The availability of properties also dropped; the total number available to rent nationwide fell from a high of over 23,000 in mid-2009 to less than 16,000 at the beginning of this month.
Read the full Daft report on:
Two out of three first time buyers say they intend to buy a property in the next year according to a new survey by leading Irish property website MyHome.ie.
This figure is up from 57% last Autumn while the number who do not intend purchasing has halved from 12.5% to 6.3%.
The majority of first time buyers expect to make the purchase in a 6 to 12 month timeframe while a similar number, 58%, expect house prices to fall slightly in the next twelve months.
Seventy eight per cent of first time buyers now have the funds required to pay a deposit, up 20% from last September.