Rental Review: First Quarter 2023

Irish Property Market Rent Review

Market rents in the first quarter of 2023 were an average of 1% higher than in the final three months of 2022, the smallest increase since 2020.
 
The average market rent nationwide between January and March was €1,750 per month, compared to €1,387 in the first quarter of 2020 and a low of just €765 per month seen in late 2011.
 
There were significant regional differences in how rents changed in the first quarter.
 
As in recent quarters, the upward trend market rents around the country is driven by extraordinary shortages in the availability of rental accommodation.
 
Nationwide, there were just 959 homes available to rent on May 1st . While this is up 13% on the same date last year, it still represents one of the three lowest totals for availability at the start of the month in a series that extends back to the start of 2006.

 

Over the past two years, the private rental market has faced growing challenges due to various factors. Initially, as society reopened after the COVID-19 pandemic, followed by the war in Ukraine causing a refugee crisis, the rental market experienced increased strain. There are indications that the situation is not improving and may, in fact, be deteriorating. While the availability of rental properties has stopped declining, it remains at exceptionally low levels. Additionally, the rate of rent increase from January to March was significantly smaller compared to the average growth observed in 2021 and 2022.

 

However, addressing the rental housing shortage in Ireland requires significant intervention from policymakers. Although the number of rental homes entering the market from newly built developments has remained steady in recent months, it is anticipated to decrease in the coming quarters unless issues regarding planning certainty and economic viability are addressed. Ultimately, policymakers must establish a clear plan outlining how tens of thousands of new rental homes will be delivered in all major towns and cities throughout this decade.

 

Average market rents, and year-on-year change, 2023 Q1

Dublin: €2,337, up 11.2% year-on-year

Cork city: €1,731, up 7.7%

Galway city: €1,772, up 11.8%

Limerick city: €1,645, up 10.8%

Waterford city: €1,399, up 10.8%

Rest of the country: €1,373, up 12.7%

 

Breaking Down the New Rent Increase Laws

 

There seems to be a lot of confusion since the Government announced they were changing the way which rent increases were going to be set in July 2021 and we are here to break it down for you.

The Residential Tenancies Act 2017 was originally amended to state that in rent pressure zones (RPZs) a Landlord could increase the rent annually by a maximum of 4%., and outside of the pressure zones it could be increased bi-annually.

However, in July it was brought in that the 4% cap is being replaced and from July 9th 2021, rents in RPZs (rent pressure zones) can now only be increased in line with inflation as recorded in the Harmonised Index of Consumer Prices (HICP), with bi-annual reviews outside of RPZ being extended for an additional three years.

Using the HICP value on the date the rent was last set, you can see the difference between this value and the most recent HICP value, if there has been an increase in HICP values the RPZ calculator will produce the rent increase allowed however, if the percentage is a negative or zero value it will show that no increase is allowed. It's really that simple

We highly recommend that you always use the RPZ calculator to ensure that your calculations match up with that of the RTB which we have linked to here

You can also view the full HICP values dating back to January 1996 here:

We hope we made the confusion on the new laws as little easier to understand but if you have any further questions on the new rent increase laws please leave your comments down below!

Regards

The McPeake Team

Daft Rental report from Q1 of 2021

 Daft recently published their Rental Report from the first quarter of 2021on May 12th. 

They've reported that rents have risen an average of 2% in the first quarter of this year. The average national rent is higher than the year previous, making it the largest quarterly gain since mid-2018. Rents in Dublin however have fallen, with the city centre seeing a price drop of 6.5% in just one year, making the average rent in the city now €1,974. Despite this supply in Dublin is up 20%.

The various trends from the past year reflect the availability of homes for rent with supply increasing in Dublin but decreasing everywhere else. Outside of Dublin rents are 7.1% higher than quarter 1 of 2020, with only 1,150 rental units available on May 1st (down one third than what was available the same date in 2020.)  While there were under 2,500 homes available to rent on May 1st 2021.

With vaccinations rolling out and the ease of restrictions, the short term impact of covid-19 is beginning to fade however, the long term undersupply of new rental homes to the market which has been an issue now for some time still needs to be addressed 

If you want to read the detailed report in full, click here

Let us know your opinions on the report, 

Regards

The McPeake Team

Myhome.ie recent survey figures

According to a new survey from property website MyHome.ie 47% of prospective homebuyers think prices will rise by up to 10% in the coming year, while just 26% of respondents said the same last November and only 15% agreed with that sentiment last August.

The most recent survey of 2,521 people shows that housing stock is the most important issue facing prospective buyers, with 50% saying more stock on the market would encourage them to buy now.

Meanwhile, the findings show that prospective homebuyers have largely not been impacted by Covid-related job losses and income drops. 59% of respondents have been able to save more money for a deposit since the onset of Covid-19 last year.

According to the survey, half of respondents agree that the home-buying market is more competitive now than it was before Covid-19 emerged - just 16% disagree with this statement.

Looking ahead, 40% of respondents believe the next year will represent a good time to buy property, that figure is down from 49% last November.

Angela Keegan, Managing Director of MyHome.ie, said that the findings reflect the reality in the market. "We have seen commencements fall by 30% in 2020 compared to the year before, while second-hand stock coming to the market has fallen by 50% in the first two months of 2021 compared to the same time period in 2020.”

Ms Keegan said that the earlier a Covid-19 vaccine could be approved and distributed, the better for the market. "Above all else, we need to deal with the pandemic in order to get the construction sector back working, improve vendor confidence, and redress the imbalance between supply and demand," she said.

Regards,
The McPeake Team...
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This review made our day!

 

We always welcome and appreciate client's feedback and reviews, as we strongly believe that our customer's perception is our reality. What they think about our service, MATTERS to us!

 

A Historic Low Level of properties for sale in Ireland!

 

It is always a pleasure to receive such a nice feedback!

 

10 Steps To Buying Your Dream Home

Finance for Homes Limited

Unit 4, Block D, Tyrrelstown Town Centre, 

Tyrrelstown, Dublin 15                        

Telephone: 089-615 92 82                                      

Email: sarah@financeforhomes.ie

(1) Chat to us: The first step is to find out how much you can potentially borrow. Call, text, or email us anytime to take advantage of our FREE service and we can start the journey together – we are flexible and work at a time that suits you. We will help you at every step of the process, guiding and advising you along the way. 

(2) Apply for a mortgage: We will work to get you the best deal for your circumstances and even help you complete the application forms! We will give you a checklist of the documents you will need, tailored to your unique circumstances. 

(3) Receive your Approval in Principle: Your application is assessed by the bank/banks that best suit your needs. If/when you are approved for the mortgage, you will receive an ‘Approval in Principle’ (also known as AIP) letter which means you can go house hunting with confidence. The AIP will be valid for 6 months and most Estate Agents will request a copy of this, plus your savings/balance of funds before agreeing to view a property. If you have concerns about this, we can give you guidance on how best to proceed. 

(4) Find your new home: Once you know how much you can borrow and receive your AIP; you can focus the search for your new home within your budget. This may take some time, between finding a suitable property and potentially bidding against other buyers (usually for Second-hand properties only).  

(5) Pay your deposit: Once you have your bid accepted, you are classed as “Sale Agreed” on that property. You will then have to pay a booking deposit of between €5,000 and €10,000 depending on the Estate Agent and price of the property. This deposit is refundable, if for example you change your mind, or your circumstances change. If you are fully committed to purchasing the property, the Estate Agent will arrange for the Sale Contracts to be sent to your chosen solicitor. 

(6) Choose a Solicitor: They will look after the legal process of buying a home. This is called the conveyancing process, and they also carry out searches to ensure there is nothing that could undermine the value of the property. Later in the process, your solicitor will go through the Sale Contract and Loan Offer documentation with you to ensure you fully understand all the finer details. When you sign the Sale Contract (usually approximately 4 weeks after you have gone Sale Agreed) you will then pay a non-refundable 10% deposit. Your solicitor and the seller’s solicitor will exchange signed contracts nearer drawdown stage and will work to agree the closing date of the sale, a date that is convenient for both you and the seller when purchasing a second hand home, or based on the completion of your new home. 

(7) Get the property valued: The bank will request you pay for a valuation on the property you choose, this will confirm the agreed purchase price is fair. This will need to be conducted by a panel valuer and we will help you arrange this. The valuation usually costs between €150 - €185. If the property you are purchasing is Second-hand, particularly over 10 years old, we would encourage you to arrange a Structural Survey. While it costs in the region of €350-€500 it is something we highly recommend. This survey will ensure there are no major issues which would cost more money down the line. Some banks may request a structural survey regardless of the age of the property, or where the valuation indicates a structural survey must be completed.  

(8) Loan Offer is issued: Once the valuation and structural survey (if required) are satisfactory, we arrange the Loan Offer (also sometimes referred to as Loan Pack or Letter of Offer) to be sent to your solicitor. You then arrange to sign the Loan Offer and the Sale Contracts as noted above, in the presence of your solicitor. 

(9) Take out Insurance: All banks require you to have appropriate Life Cover and Home Insurance to protect both you and the property. We recommend you arrange this as early as possible, for instance, once you have decided to proceed with the purchase of the property and requested Sale Contracts to be sent to solicitor, as Life Cover may take some time to arrange, particularly if you have any underlying health issues. 

(10) Mortgage Drawdown: This is sometimes called Cheque Issue / Funding Stage and it is when the bank issues your mortgage funds to your solicitor, who then in turns transfers it to the seller’s solicitor and this can sometimes take up to 2 weeks to completion. If you are purchasing a new build, you may be called to snag the property at this point. Once your solicitor receives the payment and contacts you to confirm all is in order, you collect the keys to your new home from the Estate Agent. CONGRATULATIONS…. enjoy this next adventure! 

Regards,
The McPeake Team...
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Another precious feedback!

We, at McPeake Auctioneers value your feedback & use your comments to improve our standards. Here are some more recent responses Hilary Cummins received! Hilary would be glad to help you with any questions you have regarding your property! Call us on 01 8272300 or email info@mcpeakeauctioneers.com #feedback #compliment # property #appraisal

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Key findings and recent surveys.

Dear Reader,

As a valued reader of McPeake Auctioneers blog we would like to present you some key findings:

• According to new figures from the Central Bank Ireland had the second highest mortgage interest rates across the euro area in December, coming only after Greece.  The average interest rate on new mortgages in Ireland stood at 2.76% in December, compared to the euro area average of 1.29%. 
•  House prices jump 7.4% in 2020 which is the largest such increase in three years. Homes have increased by almost €20k in one year, on average. The average sale price nationwide in the final quarter of 2020 was €269,522, up from €250,766 a year ago.
•  Housing stock levels were on the floor coming into 2020 – 25% fewer houses will be sold this year than last. The total number of properties available to buy on December 1st was less than 15,400, the lowest figure for stock nationally in almost 15 years. Housing supply won't meet demand until 'at least' end of 2023, BPFI chief economist Ali Ugur said. Only 20,000 new homes will be completed this year, short of the 35,000 annual units that are required.

The survey of more than 1,000 adults living in Ireland which was conducted by Censuswide on behalf of Esri Ireland shows that 43% of those surveyed said they would not want to return to the office at all, with 51% saying they would like to be able to work from home at least part-time.

• More than three-quarters of respondents say the cost of renting or buying a property is a key consideration, making it the number one factor.
• Other top considerations include proximity to work, chosen by 59%, and distance to shops, cited by half of adults.
• 21% of survey participants said the pandemic had increased the importance of living space and facilities for them while for 14% of consumers, their importance had decreased.
• The survey reveals that living conditions were more likely to have increased in importance for those on higher incomes.

Regards,

The McPeake Team...

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DUBLIN RENTS FALL 3% IN 2020, BUT RENTS ELSEWHERE UP 5%

As a valued reader of our Blog we offer you the most recent Daft Rental Report 2020 Q4 highlights which shows that: 

• Average national rent in Q4 is again higher than a year previously and is now €1,414 - but is lowest rate of inflation since 2012
• Rents in Dublin fall by 3.3% in one year and is now €1,984
• In Dublin 1, Dublin 4 and Dublin 6, rents in the final three months of 2020 were 6% lower than a year previously, while in Dublin 2, they were 7% lower
• Supply in County Dublin is up 64%
• Outside of Dublin rents increase 5.4%

The average rent nationwide in the final three months of 2020 was 0.9% higher than a year previously.  

In Dublin, rents fell 3.3% during the year 2020, with rent declines concentrated in the second and fourth quarters of the year. Covid-19 has had the opposite effect, with the number of homes being advertised to rent up 64% on February 1st, compared to a year previously. With the increase in homes being advertised, active demand for homes to rent has also soared, up 40% compared to pre-pandemic. But the greater liquidity of the market has helped bring rents down slightly. Nonetheless, rents in the capital – and in Ireland’s other main cities – remain at twice their level a decade ago. The average monthly rent stood at €1,414 in the final quarter of 2020, up from a low of €742 per month seen in late 2011. 

In the rest of the country, however, rents rose by 5.4% on average during 2020, with only a modest fall in the second quarter lockdown and an increase during the final three months of the year. The different trends in rents reflect changes in the availability of rental homes. In Dublin, there were 2,600 homes available to rent on February 1st, up from fewer than 1,600 on the same date in 2020. In the rest of the country, however, the number of homes available to rent has fallen sharply – from almost 2,000 on 1st February 2020 to just 1,139 a year later.

To find out how your county is performing please access the latest Rental Price Report 2020 Q4 on Daft.ie 

Regards, 
The McPeake Team...
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Irish house prices forecast to rise by 4% as supply struggles to meet demand

The Society of Chartered Surveyors Ireland (SCSI) found that two-thirds of 250 chartered agents surveyed in December expect property prices to increase this year, ranging from a 3% advance in Dublin to 6% growth across Connacht and Ulster. 

Experts had estimated that property values would decline by as much as 12% in 2020 because of the pandemic.

However, the market has defied expectations, as ongoing supply shortages were compounded as construction came to a standstill during the spring lockdown.

“2020 was dominated by Covid-19 and this led to a stop, start, surge property market …Given the recent introduction of new restrictions, it’s very possible we could see a repeat of that stop, start, surge pattern in 2021,” said TJ Cronin, vice-president of the SCSI.

Read full article: IrishTimes.com

Regards, 
The McPeake Team...
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Happy New Year!

 We look forward to helping you in 2021 with all your property queries! 

Merry Christmas & Happy Holidays!

Dear our customers, 
Please note that all calls will be continued to be answered throughout the Christmas holidays. 

Regards, 
The McPeake Team...
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Recent Review and Feedback.

We always welcome and appreciate client's feedback and reviews, as we strongly believe that our customer's perception is our reality. What they think about our service, MATTERS to us!

Regards, 
The McPeake Team...
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Hello December! We are open!

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The McPeake Team...
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Property of the Week: No. 2 The Lawn, Roseville, Bettystown, Meath A92Y7X4

No 2 the Lawn, Roseville, a truly unique property within walking distance to the Village & easy access to the sandy coast line (300m away).
It is an exceptionally spacious (140 m² / 1507 ft²)4bedroom three storey semi detached property presented in turn key condition. This would make an ideal family home for life. It offers bright, spacious and well-appointed tastefully decorated accommodation throughout.

Regards, 
The McPeake Team...
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Approvals for Government’s home loan scheme (Rebuilding Ireland) plummet 60%

Increase in interest rates for Rebuilding Ireland home loans has pushed out potential borrowers.

New figures from the Department of Housing show that approvals for the Rebuilding Ireland home loan scheme fell by 60%, draw downs fell by 50%.

Previously a successful applicant could borrow at a rate of 2 per cent over 25 years, a rate which significantly undercut those available in the market at the time. However, this rose to 2.745 per cent in January of this year, making the loans considerably less affordable, and decreasing the amount potential home-buyers can borrow. It also pitches the scheme substantially above market rates, with a rate of 1.95 per cent now available from Avant Money over seven years.

According to the figures, 235 home loans were approved in the first six months of the year at a total value of €38.2 million, with 283 loans drawn down at a value of €47.7 million.

This compares to 574 loans approved in the first six months of 2019 at a total value of €95.7 million, with 556 loans drawn down at a value of €93.9 million.

While applications for the scheme are not detailed in the department’s figures it’s likely that fewer people may have applied for the scheme given the impact of the Covid-19 pandemic on incomes, however, the decrease in approvals in the first quarter of 2020, before the pandemic hit, was significant at 37 per cent.

This suggests that the Government’s decision to increase the cost of the scheme has also hit potential applicants.

One of the most noted declines was seen in Dublin city, where the scheme had been popular. Last year 140 home-buyers were approved for the scheme in the first six months of the year; this year. however, just 56 were. Fingal, which covers areas like Swords and Castleknock to the north of the city, approved 49 loans in the first half of 2019, but just 19 in 2020.

For more details read full article: Approvals for Government’s home loan scheme plummet 60% (irishtimes.com)

Regards, 

The McPeake Team...

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Recent feedback and comments!

We at McPeake Auctioneers value your feedback & use your comments to improve our standards. Here are some more recent responses Hilary Cummins received! Hilary would be glad to help you with any questions you have regarding your property! Call us on 01 8272300 or email info@mcpeakeauctioneers.com 

1. "Hi Hilary, It was a long way and I Thank You for your patience and dedication" THANK YOU SO VERY MUCH! Ian Gregorio 

2. " Hilary, Thanks a million for everything. Much appreciated. Best Wishes" Breda & Family