Ask the experts: What percentage increase in rents do you envisage occurring in 2018?
I would expect to see growth in rents of 5-6pc, a similar level to 2017. Again in this market, demand exceeds supply and that will drive further inflation. Similarly, the restricted supply of available properties to rent coupled with strong population growth will continue the upward movement of rents.
Michael Grehan is MD of the Sherry FitzGerald estate agency group, which has a 66-branch-strong network, including franchises. He has more than 28 years’ experience in the property sector.
Rents are already showing signs of inflation well above the 4pc ceiling in areas where the rent pressure-zone legislation applies. Although in theory they shouldn't, the restrictions don't apply to new stock or refurbished properties, the supply of which could drive increases higher.
Áine Myler is the director general of the Society of Chartered Surveyors Ireland (SCSI). She holds a master’s degree in planning and development economics, and has worked in estate agency for 26 years and in later years as a consultant.
In a country town like Drogheda, we have seen double-digit increases over the past few years. This is unlikely to continue due to current rent restrictions and Drogheda's newly acquired RPZ status.
Darina Collins is a director and founding member of the Real Estate Alliance (REA), a partnership of more than 50 estate agency firms nationwide. She is also a partner in REA O’Brien Collins, the Drogheda-based estate agency.
The reason rents will move up is the same as sale prices, because of a shortage of stock. There are increasing numbers of renters in the marketplace, so it's obvious rent prices will rise even in rent pressure zones.
Pat Davitt is the CEO of the Institute of Professional Auctioneers and Valuers (IPAV). He has more than 35 years’ experience in the sector, spending much of it running a family-based auctioneering firm in Mullingar.
The rental market is distorted because of 'rent certainty', a form of rent control which has created two markets. Properties in rent pressure zones will rise by 4pc next year, which is the maximum allowed. Rental levels for properties not affected by rent control are likely to rise by 5-6pc this year. Affordability is also becoming an issue for many renters, with some tenants no longer able to afford to rent in their preference areas. Rents outside Dublin are set to rise at much sharper levels and are likely to surpass 10pc next year, as a critically low level of new homes are being built outside the capital.
Keith Lowe is CEO of Douglas Newman Good (DNG), a national estate agency network which has 75 branches throughout the country, including franchises. He has 33 years’ experience in the sector, having joined the firm in 1984.