Vacant rentals up by 47% during ‘exodus’

THE number of properties available to rent rose by almost 50% last month – amid an exodus from the capital.

The latest Daft report shows a 47% increase in rental units in Dublin in May.

Rental costs nationwide also dropped by 2.1% in April, compared with March.

Renters who gave up their tenancies and returned home to work remotely during lockdown, as well as the rise in the availability of short-term lets, is thought to be behind the surge in available properties.

In May, rental ads were up 40% compared with the same month last year.

Commenting on the figures yesterday, Trinity College economist Ronan Lyons, who authored the report, said recent reports by jobs website Indeed.com and employers group Ibec found that jobs in Dublin – such as in tech companies or media – are far more amenable to working from home than jobs in rural areas.

Stephen Faughnan of the Irish Property Owners Association said that many tenants abandoned their rental properties during lockdown.

He said: ‘The situation around Covid-19 has upset business in Ireland and the rental business is no exception and has also been substantially disrupted. A lot of tenants returned home in March at the commencement of lockdown and tenancies were terminated and, in some cases, abandoned.

‘The lockdown restricted reletting and, in spite of demand being high, Government guidelines restricted the showing of property as it was not deemed an essential service.

‘This is likely to have resulted in properties not being let during the month of May. Student accommodation became vacant earlier than usual in March and traditionally some students working in the hospitality industry would have remained in accommodation.’

Despite the rise in rental properties, the Dublin market appears to be holding up well.

‘Overall, the rental market has proven less volatile than the sales market in recent months. Rental prices nationwide did fall 2.1% in April, compared with March, a substantial fall, but this was far less than was seen in the sales market.

‘Similarly, the “bounce back” in May was much more muted (0.6%). It leaves the national average rent still slightly higher than a year ago (+0.7%) and the average sale price 1.6% lower than a year ago,’ the report states.

It also forecasts a drop in both the sales and rental markets in the coming months. ‘As the country opens up again, over June and July, there will be time to assess the economic damage – in particular the damage that lasts beyond the lockdown.

The report also reveals how the number of new homes on the market has plunged more than 70% because of the coronavirus pandemic.

‘Where once you might have seen 40 property ads in an area at this time of the year, now there is only 10,’ said Mr Lyons.

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‘Rental market has proved less volatile’