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Housing


8 February 2018

IRELAND: Property prices and rents expected to increase by 8% this year

urveyors of the Society of Chartered Surveyors Ireland (SCSI) believe the rental market is ‘in crisis’ and predict that despite the introduction of rental caps, residential rents will increase by 8% nationally this year.

Rental caps were introduced to limit increases to 4% per year, however caps do not apply to new tenancies or to landlords who refurbish their properties. Most surveyors believe that many landlords are exiting the housing market since the introduction of the rental cap. 

John O’Sullivan from the SCSI’s Residential Agency Group estimates that for every three landlords who sell their letting property, only one new landlord enters the market. Landlords see ownership of property as more of a hassle than what its actual worth. Nationwide there are concerns for the low amount of rental properties.

Another important factor to take into consideration is the increasing price of development land. After an increase of 14% in 2017, it is expected to increase even further this year by 11%. Especially in urban areas such as Dublin, many believe it is simply not economically viable to build affordable houses. 

How does this affect the client?

With the departure of so many landlords, rents will remain high as there will be a lack of rental properties.

 

 

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