IPAV, the Institute of Professional Auctioneers & Valuers, has said the new data on existing rent levels reregistered during Q2 2023 was a welcome improvement in the data set, something IPAV has long campaigned to achieve.
The new data shows rent levels in existing tenancies nationally are €242 per month lower than new rentals.
“It’s worth remembering that this is an average figure and, therefore, many existing rentals are much lower than the average, particularly those that have been subject to Rent Pressure Zone rules for a number of years, some since 2016 when the RPZ rules were introduced,” Pat Davitt, IPAV’s Chief Executive, said.
The new data shows the biggest divergence between new and existing rentals in Q2 2023 was found in Sligo where new tenancy rents were 33.5 per cent (or €274 per month ) more than existing rents, followed by Westmeath (31.2 per cent or €280 per month ).
Mr Davitt said it was concerning that the number of new tenancies registered in Q2 at 10,673 has fallen substantially from 14,085 in the previous quarter.
“This is very likely the result of private landlords leaving the market with the added pressure of much increased interest rates. The rental proposition as an income stream had already lost much of its appeal as an investment class, despite record high rents. This is as a result of the weight of high taxes, up to 52%, and an unbelievably onerous regulation regime.
“We’re seeing some landlords no longer wanting to leave properties vacant for a two-year period as they may have done previously, so that they could move to market rent,” he added.
And he said that despite the gravity of the situation there continues to be a broadly negative attitude towards landlords, 80% of whom were found by the CSO