Thursday 19 October 2017

Ask the experts: Where Do you see rents going in 2017?

Claire Solon, President, Society of Chartered Surveyors. Iain White/Fennell Photography
Claire Solon, President, Society of Chartered Surveyors. Iain White/Fennell Photography
Marian McQuillan, Ceo of Quillsen
Pat Davitt, CEO of IPAV
Keith Lowe CEO Douglas Newman Good

Claire Solon

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Claire Solon, President, Society of Chartered Surveyors. Iain White/Fennell Photography
 

It's highly likely that rents will increase, as legislation introduced in 2016 for rent certainty over 24 months will affect many renewals in 2017. There also been a reduction of circa 13pc in the number of properties available to rent in Q3 2016, compared to the same time in 2015. The Government's most recent announcement about rent caps in specific pressure zones is another attempt to control rental rates, although it's not at all clear how this will work and I would be concerned about the impact on residential investment.

Claire Solon is president of the Society of Chartered Surveyors Ireland, with 5,000 members in the property sector, and head of property at Friends First, where she manages €500m of property assets.

Keith Lowe

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Keith Lowe CEO Douglas Newman Good
 

I think that it is likely that rental values will rise by around 10pc this year. Rents have exceeded their peak levels back in 2006 as the rental crisis intensifies. There is a significant amount of student accommodation on the drawing board and under construction. When these are made available - together with the very capable Housing Agency continuing to acquire housing for social units - rents are likely to level out or indeed reposition themselves somewhat. Rents will remain artificially high for the next year or two but will come back to equilibrium levels over time.

Keith Lowe is CEO of Douglas Newman Good, which has 75 offices throughout the country. He has 32 years' experience in the sector, having joined the firm in 1984.

Marian McQuillan

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Marian McQuillan, Ceo of Quillsen
 

Supply of rental property is still way too low to meet demand. Therefore one would expect prices to rise. Although rent levels are fixed for a two-year period, this is a very short timescale for a tenant to feel secure. However, with rental levels of €1,300-€1,600 for a one-bed apartment and €1,800-€2,500 for a two-bed apartment in certain areas, affordability has to be a leveller. Meantime, under the new rent control proposals, landlords entitled to a rent review from January will have to limit any increase to 4pc.

Marian McQuillan is the CEO of Quillsen, formerly Gunne Estate Agents, and was formerly a director of Purcell McQuillan Tax Partners.

Pat Davitt

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Pat Davitt, CEO of IPAV
 

Only about 10pc of rents are measured on a monthly basis in the RTB rent report; the other 90pc will be recorded in the index when leases are up for renewal following expiry of the two-year freeze. We will see rent increases for quite a while. However, clearly the new controls on rent increases are going to impact - with landlords who hadn't increased their rents already most likely to seek hikes.

Pat Davitt is the CEO of the Institute of Professional Auctioneers and Valuers (IPAV). Pat has more than 34 years' experience in the sector, spending much of it running a family-based auctioneering firm in Mullingar.

Irish Independent


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