Caroline Bergin of CBPM Real Estate in Portlaoise, after official figures showed that standard rents for Laois have now exceeded €1,000 per month, spoke about what she has seen firsthand from the impact of the crisis on supply.
“There are people coming in crying. I have been in this business for 20 years in the rental business and have never seen anything like this.”
Speaking to Leinster Express last Thursday, July 28, Ms Bergen outlined the stark reality of supply problems.
“Yesterday was the first day I didn’t see anything (rents) for the whole Lawa,” she said.
She said stock shortages, taxes, restrictions on rent increases and rising house prices are driving landlords out of the market.
“Not a single property for rent in Lawa is very frightening at this time,” she added.
According to Ms. Bergin, many of the owners are private investors who could have entered the market in 2007 or 2008 just before the crash. She claims that they would have had passive equity but are now able to make a profit from the sale of those properties.
“Nearly every second of the owner is selling because there is no incentive to stay in it,” she said.
You don’t see a solution to the problem anytime soon.
“I find the developers very cautious. I made it clear that they would buy the land but would not go to it immediately.
Ms Bergen said incentives were needed to get landlords back on the market. She said the government needed to “get rid of” rent pressure areas and consider tax breaks.
In Portarlington, DNG’s Ruth Kelly comments on the number of people who come to the office looking for places to rent.
“There is absolutely nothing” for the tenants.
She said the people in their books are rented and don’t move.
Last Wednesday, a search for myhome.ie, sherry fitzgerald and Daft.ie revealed just one three-bedroom house to rent and cost €1,300 per month.
Rents in Lawa rose 7.8% in one year making the county among the ten most expensive counties to rent in Ireland.
New figures from the Residential Rental Board (RTB) for the first three months of the year reveal that the average rent in Laoua is now €1,069, up from €992 for the same period last year and more than double the €522 average from 10 years ago in 2012.
Rents in Laoua are now higher in the center and more expensive than in Waterford, with the figure being €1,054. The RTB numbers cover the period from January to March 2022.
Laois is still below the national average of €1,460 per month and below the annual increase of 9.2%.
However, tenants in the Portlaoise and Portarlington constituencies who are supposed to be insulated from large and continuing increases are under pressure.
The RTB report shows that the rent in Portlaoise is now €1,109.51. It’s been up more than 7% each quarter since winter 2021. In the Port Graigue area, rents are up more than 7% in each of the last four quarters since last summer. The rent is now € 1,012.47 per month in the large area.
There are no figures for Borris in Ossory Mountmellick because it is not in the rental pressure area.
Lawa was one of fourteen provinces that had benchmark rents in new rentals above €1,000 per month in the first quarter of 2022.
The highest standardized average rent in new rentals for the first quarter of 2022 was in Dublin at €2,015 per month while the lowest monthly rents were in Leitrim, where the standard average rent in new rentals was €734 per month.
The RTB rent index is based on the total private rents newly registered with RTB each quarter. It is independently analyzed by the Institute for Economic and Social Research.
The index provides rent indicators based on actual rents paid in Ireland’s private rental sector.
RTB Director Niall Byrne said: “The recent rental index, which is based on new leases registered with RTB in the first quarter of 2022, shows continued rental growth nationwide with a 9.2% year-on-year increase. We are also seeing a steady decrease in the number of rentals registered with RTB in the first quarter of 2022. It is likely that these results are still indirectly affected by COVID-19 public health measures combined with supply restrictions and tenants choosing to stay longer. in current rentals. When reading the index, it is also important to note that these results only provide us with a snapshot of a small percentage of Ireland’s private rental sector.”
Mr. Byrne said: “RTB would like to remind landlords that the annual registration was submitted on April 4, 2022. Landlords are required to register their leases on an annual basis.”
He also noted that “there have been new changes to the rental legislation that came into effect on July 6, 2022 regarding how a landlord can terminate a lease. To find out what these changes mean for landlords and tenants, please visit our website at www.rtb.ie.”