Surplus Of Properties Will Be Shortlived – Long Term Supply Is Still An Issue

The Daft report released today outlined information on the rental market for the first quarter of 2020, it also included some information on the situation that has developed since the Covid-19 Emergency.

IPOA’s view is that the effects of the current Covid-19 situation is unlikely to change any of the long-term housing needs. While the immediate indication might be a lowering of rents, there is a continued danger of private landlords leaving the sector and in the long term we will continue to see a shortage of rental properties.

Landlords and tenants are now facing challenging and problematic situations.

  • Foreign students and some tenants have left Ireland, emptying properties and returned keys.
  • Students have left accommodation and returned home when Colleges closed; some moved out of properties and removed all their items, and these properties are available for reletting.  Some students went home leaving all their items in properties and have not finalised their tenancies.
  • There is demand in the market for short-term letting where workers are looking for temporary accommodation to avoid putting vulnerable family members at risk of Covid-19.

In order to mitigate losses landlords need to re-let these properties.

Stephen Faughnan outlined “Some Tenants are holding back on their rent as they cannot afford to pay or in some cases just won’t pay and then you have the Tenants who pay as before.  All this is having a big effect on the sector but it is our opinion that this will be short lived. We expect the Country to commence a return to work, the process of normality returning will increase demand for units and the current supply will be taken up rapidly.”  He went on to say “While there currently appears to be a small supply surplus we must not forget the underlying problem of vast numbers of Units being lost to the Market as a result of Owners leaving the sector as a consequence of unfair complex legislation, problems with the running of the units and the lack of fair taxation etc.”

Click HERE for full Daft Report

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