A shortfall of up to 200,000 rental homes and availability at half that of pre-pandemic numbers spells trouble for prospective renters
The Irish Property Owner’s Association (IPOA) has today expressed concerns over the findings of the latest Daft.ie Rental Price Report for Q4, 2024, which highlights an ongoing shortage of rental availability and the resulting instability in the market.
The report shows that market rents rose by an average of 5.7% during 2024, with inflation in Dublin converging with the rest of the country. The minimal improvement in rental availability throughout 2023 and early 2024 was followed by a sharp decline in availability in recent months with just 2,300 rental properties on the market as of 1st February, well below the pre-pandemic average of almost 4,400 homes.
The IPOA contends that continued rent increases for new tenancies, compared to relatively stable rents for existing tenants, reflects the impact of Rent Pressure Zones (RPZs), which disproportionately affect landlords with long-term tenants while driving up rents for new market entrants. This two-tier system discourages investment in the sector and exacerbates the supply crisis, ultimately making it more difficult for new renters to secure affordable housing.
Mary Conway, Chairperson of the IPOA, commented: “There is no doubt that the rental market is in a crisis and current policies are driving landlords out of the sector. Excessive regulation and financial pressures are making it increasingly unviable to provide rental accommodation, reinforcing the IPOA’s calls for the Government to immediately address supply shortages. Rental shortages have led to higher rents for new tenants, fewer available homes, and greater uncertainty in the market.
“The IPOA urges the Government to reconsider policies that encourage landlords to remain in the sector and boost supply, while reviewing the current measures that have created an imbalanced and unsustainable rental market.”