15,000 rental homes lost due to exodus of landlords
THERE was an estimated loss of 15,000 rental properties last year due to a mass exodus of landlords, a new residential market review has shown.
The loss of that many tenancies last year – approximately 6% of the market – is a ‘primary worry’, says a report from estate agents Sherry FitzGerald.
‘Unfortunately, as has been the trend for over a decade, the exodus of landlords from the rental market continued unabated in the year, with just 11% of purchases made by investors,’ it states.
‘Comparatively, 35% of all sales were investors selling their properties, signalling a huge disparity between those entering and exiting the market... Latest estimations by Sherry FitzGerald suggest there will have been a net loss of 15,000 tenancies in the private rental market in 2023.’
Owner-occupiers remained the most active purchasing group in 2023. They represented 80% of all second-hand home purchases made through Sherry FitzGerald in the year, with first-time buyers comprising over 44% of all owneroccupiers. ‘Looking at the year ahead, the key trends witnessed last year will likely continue into 2024,’ the market review states.
Transaction activity is expected to remain stable, limited by a shortage of second-hand stock, and higher interest rates.
The report says key concerns for the residential market in 2024 are a shortage of second-hand and new homes, particularly in rural and regional Ireland. ‘It is likely that completions in 2024 will total approximately 34,500... As has been the case for many years, the exodus of landlords from the rental market remains a primary worry, with approximately 15,000 tenancies lost in 2023,’ it states.
According to the Central Statistics Office, there were 330,632 private rented homes across the country in 2022. However, the Residential Tenancies Board recorded 246,453 registered tenancies.
Meanwhile, house hunters will find it harder to buy a reasonably priced home this year with residential prices likely to rise by 5%.
Data from the Institute of Professional Auctioneers and Valuers (IPAV) found there were price hikes across the country in the last half of 2023 in the 5 to 7% range. Costs are now likely to rise again this year, according to Pat Davitt, IPAV’s chief executive.
He said the Government needs a combination of coordinated measures to fix the market, from planning to revisiting Rent Pressure Zone rules, and giving meaningful incentives to landlords. He said we need a series of measures ‘working in harmony, rather than isolated and divergent policies with the immobilising baggage of unintended consequences’.