12th May 2021
The Daft report released today outlined information on the rental market for the first quarter of 2021. It describes a reduction in rent in Dublin but increases everywhere else.
The impact of Covid-19 and working from home has increased the desirability of living outside the capital. With the vast majority of office workers working remotely together with most students working from home, there is capacity in Dublin and still some available accommodation. Some units previously used for short-term letting have been added to long-term housing stock.
The role out of vaccines are likely to increase the demand for accommodation in Dublin in the near future. Stephen Faughnan, IPOA Chairman outlined “Covid-19 had a significant detrimental effect on the Dublin rental market. The exodus of people from Dublin was unprecedented leaving lots of rental accommodation vacant. Rent Pressure Zones effected the markets’ response to increased supply causing a reluctance to reduce rents that would have a long term effect on the value of an investment.
However, with the increased role out of vaccines, demand is likely to outstrip supply for property in the capital and lead to shortages going forward.” Mr. Faughnan continued “The private rental sector is overburdened with taxation, continually changing bureaucratic legislation, and thousands of units of accommodation have been lost to the State. IPOA call on the Government to impose a fair and equitable flat rate of tax on rental income for all property investors.”