Rental market crash! - Rents down by 12% in past year say daft!

gurramok

http://www.rte.ie/news/2009/0217/rent.html

The property website daft.ie has reported that rents fell by almost 12% in the past year.

The average rent nationally now stands at €885, down from €1,000 in the same period last year.

The report says 10,000 new properties come to the market every month, meaning that the total number of properties available to rent in the country at any one time is 20,000.

Roll on another 20%!!

South County Dublin was the area most affected by falling rents, with an average 1% decline over last year to an average rent of €1,386 a month.

Cork and Limerick saw a fall of 10%, while rents in Galway and Waterford fell by 6% and 4% respectively. The fall in rents outside major cities was 8%.

The daft.ie report predicts that average rents could fall by another 20% this year

Renters, negotiate that rent you pay downwards to the market rate!

SoupyNorman

I'm paying €1200 atm, the same apartments are €1100 now. I wonder do I have a case to raise with the landlord or am I stumped to the lease!

astrofool

You're entitled to one rent renogotiation to the market rate per year.

But ask yourself, if rents were going up, would your landlord be able to increase the rent mid lease

shoegirl

Read through the report and still see the ideology and sheer mythology of the so-called tiger years gleaming through. When is the buy-to-let industry going to learn that in a largely owner-occupied society, the vast majority of tenants are NOT going to be wealthy layabouts who cannot be bothered to buy for their own amusement, but low-income earners who cannot afford to buy. Therefore it is INEVITABLE that rents will fall, though they will fall to the artificial ceiling created by state-funded rent subsidies that subsidize welfare-dependent tenants. What landlords are being forced to decide right now, and even more in the future, is "do we start declaring for tax?" (as I suspect as much as 50% of landlords are still not doing) and accept rent subsidised tenants, or sell up/reduce rents.

With the so-called average industrial wage around about the 34k mark, this indicates that a single person earning this takes home just under 2400 per calendar month. €885 is going to be a struggle for somebody in this position to pay even if they have no other financial commitments, never mind even a modest car loan and credit card bill. Add to this the risk of job loss - I very much doubt that such a person is going to risk forking out this level of rent. Most of the people I see paying this level of rent are couples, and a lot will already have bought or consider buying now (in fact the only couples I see left paying these levels of rents are single-income families or migrants where only one is working). The big flaw of the rental system as it stood was the assumption that tenants were big earners - they are not and never were - and therefore able to afford exhorbirant rent levels.

What's made a huge difference right now is that the 20% of the housing stock in Ireland that was previous vacant but making money on paper is no longer making money on paper. This would drive owners to either sell or rent. Its interesting that this has been such a huge driver, and it will be even more interesting in around a years time to see what impact the current changes will have on vacancy levels in residential properties.

gurramok

Good points shoegirl.

One thing that is forgotten, most singletons who rent are doing it on a shared basis, a minority rent on their own for privacy reasons. The market available for under 800quid a month is the cities s not much to look at.

Expect the rent-a-roomers to move out to their own rental accommodation as whats the point of renting a room with a stranger for 500-600 a month in the city centre when 1bed apts that offer privacy are going in the 800-900 range and still tumbling.

ntlbell

astrofool wrote: »

You're entitled to one rent renogotiation to the market rate per year.

But ask yourself, if rents were going up, would your landlord be able to increase the rent mid lease

no they just get rid of you and increase the next muppet.

:rolleyes:

SoupyNorman

astrofool wrote: »

You're entitled to one rent renogotiation to the market rate per year.

But ask yourself, if rents were going up, would your landlord be able to increase the rent mid lease

I think that only applies to when the lease is up for renewal?


To be fair, I've been putting the boot in at the moaners here who signed a contract at an agreed price, thats what I did so I'll not pursue the matter. It's ok though as I'm fairly rolling in cash at the moment so I can afford my Philanthropic rent.

ntlbell wrote:

no they just get rid of you and increase the next muppet.

I'm a muppet now is it