Fall in rents and increased supply may be one-off phenomena
The housing charity Threshold has warned against complacency or self-congratulation after new statistics showed an increase in rental property supply and a fall in rents for new properties coming on the market.
Threshold today welcomed the 2.1% fall in average rent for new properties coming on the market, and the increase in the number of properties being advertised on the Daft.ie website.
“Anecdotally, it seems that some owners of apartments previously used for short-term lets are now offering these as long-term rental accommodation, and this increase in supply has meant these landlords are seeking modestly lower rents than heretofore,” said the Threshold CEO John-Mark McCafferty.
“However this should not be confused with an overall drop in rent. Existing tenants are continuing to pay the rent they always paid, and overall, rents remain 3.8 per cent higher than at this time last year. Of particular concern is the fact that due to the Coronavirus crisis, many thousands of tenants are falling into substantial rent arrears and are fearful for their tenancies once the Government’s ban on evictions ends.”
According to Threshold’s Chairperson Aideen Hayden: “While there are positive signs, such as the fact that the 3.8 per cent rent increase year-on-year is the lowest rate of rental inflation since 2012, the increase in supply may be a one-off arising from the temporary collapse of the short-term let market. The structural problem of supply shortage remains, and the crisis has also halted construction work on social housing projects, which will have an impact in the coming months.”
Tenants who are struggling to pay their rent, building up arrears or are fearful for their tenancies are encouraged to call Threshold on 1800 454 454 for assistance.