THE NUMBER OF people renting continues to rise across Ireland, with more people in the private rental sector now than at any point since 2007.
On the back of the trend, forecasters predict that rents will continue to rise in Dublin by about 5-6% each year until to end of 2019, reaching an average of more than €2,000 per month. Outside Dublin, average rent increases of 7.2% per year have been forecast.
The figures are contained in a rental report by property and real estates consultants Savills.
Based off quarterly data from the Central Statistics Office, the report said that 895,600 people are now living in rental accommodation in Ireland – a 39,500 increase in the last 12 months.
In total, 18.9% of Ireland’s population is now housed within the private rental sector. In Dublin the figure stands at 24.3%.
Various reports show that rents have been rising consistently across the private rental sector in recent years as demand far outstrips supply. The vacancy rate in Ireland is currently at 1.31%, according to the report.
It suggests that rents will continue to rise until the vacancy rate reaches an “equilibrium” level of 5.6%.
The report also notes that cash investors are now crowding out smaller buy-to-let landlords.
An estimated 199,466 private rental sector units are currently owned outright by investors – 61.1% of Ireland’s estimated stock.
Written by Cormac Fitzgerald and posted on TheJournal.ie