Are rents increasing/decreasing?

connundrum

Hi All,

Looking for general (informed if possible) views on the rental market at the moment.

I don't know what way rent should go, or is going because of a couple of conflicting bits of information.

Pushing rent down.

According to the Indo there was a huge amount of units (houses and apartments) which were bought by investors looking to make a quick turn around by selling. These units have been lying empty and will probably hit the rental market as selling doesn't make much sense at present.

The Non Irish population may shortly grow wings and disappear where the work goes. Several surveys have confirmed that the inward migration trend is slowly reversing, which will free up thousands of units for rent.

Pushing rent up.

There are a huge number of potential first time buyers who will continue to rent while the property sales market adjusts.

I can't think of any other reason for rents to be pushed upward.

Basically, does everyone subscribe to the view that the average 1st time buyer should rent rather than buy for the time being?

brianthebard

is there really that many more first time buyers than houses for sale,that they would push up rent?i don't think so.

Cadzer

Well im in the same boat at the mo. Im coming to the end of lease agrement and was thinking will i buy?Or rent for another year?

the rent in my area hasnt gone down at all and will probably move to a nearby area that is cheaper and save the money.

Then next year it will be the same question rent or buy?

DublinDilbert

connundrum wrote: »

Pushing rent up.

There are a huge number of potential first time buyers who will continue to rent while the property sales market adjusts.

Who says there's a huge number of FTBs out there?? There isn't, its just the way the demographics are at the moment, look at the CAO points for example there is much less competition for college places than there was 10 years ago.

Ok, lets say there is huge numbers of FTBs out in rental land. Lets say 1/3 of all these buy apartments tomorrow. The demand for rental units would drop by 1/3, hence most of these rental units would have to be put up for sale as there would be no one to rent them.

Any for every FTB who decides to rent at the minute ( and i know there are some) there's foreign nationals leaving the country (& rental accommodation) as they can't get work here.

Treehouse72

Seems to me that the "Pushing Rents Down" factors are verifiable and relatively easily proven. Objectively, there is a massive amount of unused property out there, all of which applies downward pressure on rents. Similarly, the dropping PPS numbers issued to non-nationals and abundant anecdotal evidence of their flight from Ireland points to the second factor also being true (not to mention increasing emigration by the Irish, as we'll see reported from the ESRI tomorrow).

In contrast, the "Pushing Rents up" argument is unclear, unquantifiable and generally kinda wooly-headed. It kinda makes sense, but one could come up with a hundred arguments why it's suspect at best, as Dilbert has shown in post 4 of this thread.

DonJose

Rental Report # 12 - 1,084 reductions, 112 increases

From the 11th to the 18th of June 2008 there were 1,084 rent reductions. The average reduction was €98 per month.

There were 112 rent increases over the same period, the average increase was €120.

The number of properties for rent in Ireland increased to 14,440 from 13,662 the previous week

http://www.irishpropertywatch.com/viewPost.php?Post_ID=96

A Random Walk

ESRI are forecasting net emigration of 20,000 in 2009. Have a think about the implications of that for the rental market.

DonJose

A Random Walk wrote: »

ESRI are forecasting net emigration of 20,000 in 2009. Have a think about the implications of that for the rental market.

Hiberian just announced 580 jobs will be transferred to India, "The staff affected will be offered re-location and re-deployment", wonder how many Irish will take up this offer???

http://www.rte.ie/business/2008/0623/hibernian.html

worded

Renting haggle - Im going to make offers less that asking and offer 3 months up front to close a deal on rental.

House prices are going down - dont catch a falling knife me thinks.