The Daft.ie rental report for Quarter 4, 2019 shows rents to be continually rising illustrating an annual average increase of over 10% nationwide and Dublin prices rising by €160 on average which is substantial considering Dublin is a rent pressured zone with a 4% cap on rent increases for previously rented properties.
Cork city which is also a rent pressured zone found rents to increase by 11.4% in 2019. Parts of Cork excluded from the rent pressure zone legislation such as Mallow and Macroom saw rent increases in excess of this.
Analysis of the number of homes available to rent provide further insight in to the reason for the continuing rise in rental property prices with only 3,641 properties available nationwide for rent on the 1st January 2020. Back in 2006/2007 which was considered a peak time in rental prices pre the recession similar reports showed over 5,000 properties available for let at the beginning of the year. Hence it is not surprising that rents in the majority of most cities and towns in Ireland have now exceeded that of their peak in 2007.
However in reviewing both the sale and rental daft reports of 2019 one would expect there to be a change in sight with the supply of for sale properties constantly increasing. Rather than there being a short term surge in supply of properties for sale there is expected to be a continuing growth of availability with over 10,000 apartments builds summited for planning in the 1st eight month of 2019.
In reality even with the growth in supply it is most likely to take a few years for the growth in supply to impact rental prices as the current shortage of supply is so great. We provide a review of the sales market below to analyse who is expected to purchase these newly supplied homes and how they will impact the property market in general.
Figures 3.1& 3.2 taken from the Q4, 2019 Daft Report illustrate the change in rent and yields throughout Munster and Dublin County over the past year.
The RTB was established in 2004 to operate a national tenancy registration system and provide a mediation and adjudication service for tenancy deputes between tenants and landlords. The board are responsible for the Residential Tenancies Act 2004 which clearly outlines the statutory tenancy obligations of landlords and tenants, including provisions for notice periods, rent reviews, evictions, anti-social behaviour, deposit refunds and Part 4 Tenancy rights.
Landlords are legally required to register tenancies with the RTB and inform them of any changes to the particulars of the tenancy such as an increase in rent or a sublet to a tenant. There is a fee for each registration but the registration of a tenancy is valid for 4 years provided at least one of the original tenants remains in the property and all new tenant information has been updated with the RTB. Landlords should be aware that the Finance Acts have been amended so that proof of registration with the RTB is a condition of eligibility for mortgage interest relief on residential properties.
While Wallace Estates are always on hand to offer advise to all our clients it is advisable that all landlords and tenants read A Quick Guide To The Residential Tenancies Act before taking any action on a tenancy. A number of links for further information on complaints and dispute resolutions are provided to your left. All links transfer to RTB publications and Wallace Estates holds no responsiblty for the information provided. Visit www.prtb.ie for a full list of publications.
In January 2009 it became compulsory that all properties being rented or sold have a Building Energy Rating Certificate (BER). A BER is similar to the energy label for a household electrical appliance like your fridge. The label has a scale of A-G, A-rated homes are the most energy efficient and G the least efficient. This informs prospective buyers and tenants of the energy efficiency of the property. The Certification is valid for 10 years provided the building is not materially changed.
In addition to examining heating equipment and fuel used the evaluation considers property fabric, construction details, insulation of walls, roofs, floors and windows and how much air is allowed in and out of the property.
Some considerations that can vary you Energy Rating include:
Is your roof properly insulated?
How efficient is your boiler and heating system?
Are you using energy efficient light-bulbs?
Can your boiler be used to heat water only in the Summer months?
How well insulated is your hot water cylinder and piping?
Are your windows and doors fitted with draft stripping?
How do you use your fireplace for secondary heating?
Is your living room an enclosed space?
How well insulated are your exterior walls?
Sustainable Energy Authority of Ireland (SEAI) is in charge of BER legislation and only SEAI approved and registered BER assessors are authorised to carry out a BER assessment on your home. Should you require an assessment on your home please complete the BER Request Form below or call us directly 021-2416503 and Wallace Estates will arrange for a SEAI registered assessor to contact you.
Unit G1, The Steelworks