Most of the talk in the property world this week surrounded the growing costs of rent around the country for all types of properties.
There wasn’t a single county where rental costs didn’t rise with Dublin and the commuter belt counties the worst affected as population soars above the amount of available housing stock.
The cost of renting is only expected to grow, however, following the introduction of the new Central Bank mortgage rules.
It’s difficult enough to save for a deposit without rental costs climbing but this week estate agents Savills predicted a new factor that could make it harder for people to buy.
They expect more investors to flood into the Irish market now that a good rent return is almost guaranteed. Indeed, British rule might be coming to Ireland once more with investors there currently buoyed by the strength of the pound against the Euro.
In a new report, the company said the rules, which set a minimum deposit for home purchases, would inevitably force people to spend more time saving before they could buy – which would in turn increase the need for rented accommodation.
Savills said it did not believe the rules would do anything to soften demand for property but would instead lead to a change in the type of buyer in the market.
The firm also said that quantitative easing would help feed investors’ interest in Irish property, as they looked for alternatives for their money against a backdrop of falling deposit yields.
While investors from abroad are expected, Savills predicted that some of this could include emigrants who were looking to move back to be near family and friends again.
- Do you think rents will rise further this year?
- Is it possible to save for a deposit while paying such high rents?
- Will foreign investors prove major competition for those that do want to buy?
Have your say below…