The Irish Property Owners Association (IPOA) have been told that rental rates are expected to rise by up to 13% in Dublin this year, with a slower increase in the rest of the country, and that there has been an upturn in property sales over the last six months.
The news was delivered to the Annual General Meeting of the Association, held in Griffith College, and attended by up to 200 landlords. David Cantwell Director of Hooke & MacDonald noted the Census showed an increase of 47% in households renting, up from 323,000 to 475,000 and that Ireland was becoming more like Europe where renting was a lifestyle choice allowing more flexibility.
“A rise in rental rates is inevitable in a situation where the population is also rising and no substantial construction is taking place,” said Mr. Cantwell. “Despite the new regulations prohibiting bedsit or studio type accommodation, there is still a demand for this which can’t be satisfied. The quality of accommodation should be more important than the size, but this common sense attitude has been put out to pasture by the new regulations.”
The IPOA Chairman, Stephen Faughnan, believes the regulations are forcing tenants out of convenient city areas into the suburbs “where it is less convenient for many people.”
The meeting heard that the rental market is currently dominated by owners with just one or two properties, or a house divided into units, and this situation is likely to continue despite an influx of institutional investors, primarily from America and Britain, who have already acquired up to 5,000 rental units.