A new report from Daft.ie shows that rental growth eased in the second quarter of the year in Ireland, but a low available stock still indicates ongoing rental growth in the coming quarters absent a significant demand shock associated with Brexit.
The report suggests asking rents rose by 6% year on year (yoy) in the three months to July 2019. This represents a halving on the growth seen a year earlier and the slowest rate of growth since October 2013.
Like the trends in house price inflation over the past twelve months, slower rental growth is led by Dublin (4.5% yoy) and the rest of Leinster. Sixteen of the 54 markets analysed are seeing double-digit growth, down from 41 a year ago.
Meanwhile, stock levels are still consistent with ongoing rental growth. As of May 1, the stock stood at a record low of just 2,700. In Dublin, the stock of available properties increased by 10% yoy in the second quarter, albeit remains at historically low levels.
According to Goodbody Stockbrokers, "The data suggests a cooling in the Irish rental market, but the low stock of available properties is still suggestive of upward price pressure. With average monthly rents in Dublin at more than €2000 per month for the first time, affordability issues are undoubtedly biting."