ASK THE EXPERTS

Will rents rise or fall in 2019?

AINE MYLER

Despite the introduction of rent caps, SCSI believes rental inflation will remain high. Despite rental increases over the past few years, the Residential Tenancies Board (RTB) reported that the number of landlords has dropped by nearly 1,800 since 2015. Some commentators see this as a good thing with ‘amateur’ landlords leaving the sector, but not all new supply will come from the Build to Rent sector. If we want a functioning rental sector, we need a mix of landlord and property types around the country to meet the varied demand. We don’t foresee any improvement.

PAT DAVITT

Rents can only increase by 4pc if they are in a Rent Pressure Zone (RPZ). It’s unfortunate the Government did not set a RPZ for the entire country at market rent as IPAV advised. The current system is unfair to landlords renting below market rent because they thought they were helping their tenants. Such landlords cannot achieve market rent and are effectively being discouraged from granting long-term leases to their tenants.

MICHAEL GREHAN

Current indications suggest rents will rise by 4-5pc. Demand is well in excess of supply for rental accommodation. With the continued exodus of private investors from the market this position can only disimprove further. Rents will continue to rise.

KEITH LOWE

Rent certainty, (a form of rent control) has created two markets. Properties located in rent pressure zones which are now mainly let at well under market value will see the vast majority of their rents rise by 4pc next year — the maximum allowed under current legislation. Rental increases in properties located outside the rent pressure zones are likely to be mixed.

I would anticipate that some rents will not increase at all as affordability issues, coupled with an increase in supply, start to have an impact.