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Effects of Landlords Selling on the Housing Market

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  • 18-07-2019 2:23pm
    #1
    MacDanger
    Registered Users Posts: 2,603 ✭✭✭


    Dav010 wrote: »
    Many times in recent months there has been articles stating that landlords are choosing to flee the rental market in increasing numbers due to the effect of legislation and rising property prices.

    This gets mentioned a lot but what difference does it make to the housing market? Whoever's buying the house is either a) buying to rent it out in which case the rental market isn't affected or b) buying it to live in, in which case that person is no longer part of the rental market so there's reduced demand.

    Either way, the fact that landlords with 1 or 2 properties are leaving the market doesn't actually affect the overall supply of housing stock.


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    #2
    Dav010
    Registered Users Posts: 14,523 ✭✭✭✭Dav010


    MacDanger wrote: »
    This gets mentioned a lot but what difference does it make to the housing market? Whoever's buying the house is either a) buying to rent it out in which case the rental market isn't affected or b) buying it to live in, in which case that person is no longer part of the rental market so there's reduced demand.

    Either way, the fact that landlords with 1 or 2 properties are leaving the market doesn't actually affect the overall supply of housing stock.

    That is a head scratcher.

    The number of rental properties goes down at a time when demand is going up, and that doesn’t actually effect the overall supply of housing stock?


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    #3
    MacDanger
    Registered Users Posts: 2,603 ✭✭✭MacDanger


    Dav010 wrote: »
    That is a head scratcher.

    The number of rental properties goes down at a time when demand is going up, and that doesn’t actually effect the overall supply of housing stock?

    What do you think happens to a house after a landlord sells it? Is it bought and not lived in?


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    #4
    Dav010
    Registered Users Posts: 14,523 ✭✭✭✭Dav010


    MacDanger wrote: »
    What do you think happens to a house after a landlord sells it? Is it bought and not lived in?

    You would hope so, but due to inward migration for work to places like Dublin, and immigrants coming/returning to Ireland, demand goes up while stock goes down. Also, the purchasers may not be people who previously were renting, they may have been living with parents or homeowners, so the evicted tenants go into a market with less choice. Your point only holds up if the number of tenants reduces in proportion to the reduction in property stock, that is not the case. The numbers looking to rent is increasing while the net number of rental properties are decreasing as per daft surveys.


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    #5
    MacDanger
    Registered Users Posts: 2,603 ✭✭✭MacDanger


    Dav010 wrote: »
    You would hope so, but due to inward migration for work to places like Dublin, and immigrants coming/returning to Ireland, demand goes up while stock goes down.

    Agreed but this occurs regardless of who owns a particular house so it's irrelevant to your point
    Dav010 wrote: »
    Also, the purchasers may not be people who previously were renting, they may have been living with parents or homeowners, so the evicted tenants go into a market with less choice.

    Fair point but this is only relevant to those whose parents live within commuting distance of their work.
    Dav010 wrote: »
    The numbers looking to rent is increasing while the net number of rental properties are decreasing as per daft surveys.

    More people enter the rental market every year as migrants return or immigrants arrive in Ireland along with the annual batch of people who "come of age" and start living independently. The number of rental properties deceases because rents are so high that people don't went to move.

    In short, the main problem is supply (people who want to buy but can't are overstaying what would have been the standard period of time a tenant stays in the rental market) rather than LLs being forced out of the market (not saying that this isn't happening but it's a problem for those who feel they are being forced out rather than a major problem for tenants)


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    #6
    Graham
    Moderators, Society & Culture Moderators Posts: 17,642 Mod ✭✭✭✭Graham


    Mod Note

    Thread split


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    #7
    amcalester
    Closed Accounts Posts: 4,121 ✭✭✭amcalester


    Rentals tend to have more adults living in them than private dwellings.


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    #8
    Samuel T. Cogley
    Registered Users Posts: 10,684 ✭✭✭✭Samuel T. Cogley


    Rental could also be bought by someone prudently living with mam & dad while saving or renting a room which feeds into the above.

    Furthermore it affects rental stocks, which you obviously don't care about if you're a buyer but surely the effects of dwindling rental stock has not passed you by.

    Apologies for spelling - need to figure out how to turn the spell checker back on.


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