Future Analytics Consulting Ltd commissioned by the SCSI to carry out research for the Residential Property Review and Outlook 2018
National property prices are set to rise by an average of 8% this year, according to the Society of Chartered Surveyors Ireland.
Over 400 estate agents and Chartered Surveyors took part in the Residential Property Review and Outlook 2018 survey in late November/early December. Future Analytics Consulting Ltd was commissioned by the SCSI to carry out the research.
The report revealed that 92% of surveyors said that the price expectations of sellers had increased during 2017, up from 86% the previous year and that despite the introduction of rental caps in Dublin and Cork, residential rents will also rise on average by 8% nationally.
John O’Sullivan from the SCSI’s Residential Agency Group said that until the supply situation was addressed, competition among buyers, a rising population and continuing economic growth would ensure price increases continued.
“Surveyors around the country are hugely concerned at the low level of affordable housing which is being constructed for middle income earners. Many believe that this is because it is simply not economically viable to build affordable new homes in urban areas, where demand is highest,” Mr O’Sullivan said.
On the rental market, chartered surveyors believe there will be a significant lack of rental properties of all sizes in 2018, with 81% of surveyors experiencing an increase in rental demand by tenants in the last 12 months.
Average Percentage Change in Rental Prices 2018
Expectation for Average Percentage Change in Rental Prices in 2018 – Nationally
The majority of surveyors believe the rental market is in crisis and that the rental cap has forced a considerable number of landlords to exit the market.
Commenting on the report, Mr John O’Sullivan said, “When the rent cap was introduced, we warned that it would have a negative impact on the supply of rental properties and that has come to pass. We estimate that for every three landlords who are selling their buy to let property in Dublin, only one new landlord is entering the market. Two thirds of private landlords own just one property and increasingly they seem to be of the view that it’s simply more hassle than its worth. Whether it’s due to the rent cap, complex regulations, a punitive tax regime, or a combination of all three, they are voting with their feet.”
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