Rent price predictions for the next 2 - 3 years?

mr_happy

Over the last 3 years we have got 10 -15% drops.

Will this trend continue of rents keep going south?
What do you think?

LevelSpirit

Anyone who answers that one is guessing. If they say they know then they should just be beaten for being an idiot. Either that or they are psychic.

mr_happy

ok then how does it look for the next 12 months?

bryaner

I think they will be pretty much the same as nobody can get a mortgage.

Homehippo

I am pretty certain they won't go up anytime soon with the next budget bringing higher taxes and cuts in public services meaning even less money circling around the economy next year rents are more likely to fall in areas with over supply and remain the same in other areas.

Milk & Honey

It is a question of supply and demand. Are there going to be currently unoccupied properties put on the rental market e.g. by NAMA? Is there going to be net emigration so that there are fewer tenants in the market? Is there going to be further budgetary pressure on Rent Allowance and tax relief on rent?Those are developments which would see rent levels dropping.
Are there going to be fewer rental properties available due to the reluctance or inability of investors to purchase property and existing rental properties being sold off as landlords are repossessed or come under financial pressure?
It seems certain that some rural areas have a surplus of property and there are very few tenants available and with the lack jobs in those areas there will be reductions.
SOme urban areas have no surplus stock and with net movement of investors out of the market supply problems may hold rents up.
The overall trend would appear to be downward.

BostonB

Supply and demand. So it depends if the area is in demand.

Also theres also what people can afford to pay.

Raskolnikov

There are two rental markets, houses and apartments. There is still a massive glut of apartments (I read that Liam Carroll is trying to rent out 1,000 of them in Tallaght alone!). Rents for houses will probably hold up a little better simply because there is more demand for them.

BostonB

Location is always a factor. Some are always in demand due to good location. Oversupply or not. Places in poor locations will suffer the most.

Jo King

Liam Carroll has been renting out apartments for quite some time. They are already on the market. He has also rented out hotel rooms. What if the properties are sold on by NAMA? They will mostly be bought by FTBs and taken out of the rental market. It is early days yet from the point of view of the effects unsold overhang.

BostonB

I would suspect Nama won't be able to rent a large % of these properties either. As they are simply in the wrong location, with no transport near them. However they'll have enough in the right locations, to have a serious impact. I'm guessing.

who_ru

interest rates will continue to rise next year, in fact this country could well be run b either the IMF or the european emergency fund.

taxes will go up no question whatsoever, so disposable income will fall. in that context are rents likely to rise, remain static, or fall?

my guess is fall - if i was a LL and i advertised a 2 bed apt at 1,000 p.m. with no takers for over a month or 6 weeks i know what i would do if someone offered my 900 p.m for 12 months.

Xiney

It will vary with location, as previously stated.

- People are emigrating by the thousands
- People who could previously afford to rent on their own are moving into houseshares, or people who could previously afford to rent are moving home
- Nobody has any money


Rent prices will continue to go down for the next 12 months, and probably won't start to climb again until unemployment gets back to 200,000. It could be a decade before rents go up any meaningful amount.

Milk & Honey

BostonB wrote: »

I would suspect Nama won't be able to rent a large % of these properties either. As they are simply in the wrong location, with no transport near them. However they'll have enough in the right locations, to have a serious impact. I'm guessing.

It is more likely that NAMA would sell off any completed apartments. They need the cash and the overhead of renting out apartments for years would be a distraction.

quozl

Of course, NAMA selling apartments would still decrease rents.

Each sale would either be one less person looking to rent, or one more property available for rental.