A Rental Report released by Daft.ie this morning shows that asking rents fell 2% month or month (mom) in April, leaving them relatively unchanged relative to April 2019 and the lowest rate of inflation since 2012.
There was a notable increase in available rental properties in April, up 40% year on year (yoy). The increase is particularly pronounced in Dublin, where it is noted that a stream of properties that were previously short-term lets had an impact.
Goodbody Stockbrokers say one should not get too carried away about this large percentage increase as the 2019 figure represented an all-time low for this series.
The stock of available rental properties is still low in an historical context, but Goodbody say there are reasons why Ireland will see this number grow further over the coming months. With renting being more prevalent amongst migrants, Goodbody say the absence of travel and the increase in working from home will have a negative impact on rental demand.
According to Goodbody Stockbrokers, "It is interesting to note that while in the sales market the new stock coming on to the market has fallen dramatically, new rentals are in line with last year’s levels so far. This is probably reflected in the very fast adjustment in rental values already. With affordability pressures likely to be exacerbated due to the income shock, further rental declines can be expected from here."