Listen Here @ 27.30 minutes
The Daft Rental Report shows that rental inflation has fallen to a six-year low. The report deals with properties being offered for rent on the market but does not reflect the level of rent of existing tenancies, where tenants remain in situ. It also highlights that the amount of available rental accommodation has increased by 10% since last year indicating an improvement in the supply. Anecdotally, IPOA members have said that the number of people contacting them looking for accommodation has reduced, indicating less pressure on the market.
The RTB Annual Report for 2018 demonstrates a loss of 12,474 private rental tenancies between 2016 and 2018. In 2012, there were 212,000 landlords in the sector compared to 173,197 in 2018. Stephen Faughnan IPOA Chairman stated “The increase in the supply is essential and a very positive development. However, Rent Pressure Zones are a blunt instrument and do not take into account the level of rent being charged or the indebtedness of a landlord, making it uneconomical for some landlords to continue renting property. The State needs to protect the existing supply of accommodation by introducing a mechanism to increase rent where it is substantially below market rate, as well as incentivize further investment in the sector.”