A recent article in the Irish Times stated that according to statistics landlords are leaving the rental market in significant numbers. They say this is due to a number of reasons, one in particular being the onerous legislation & burden placed on landlords – this is certainly true & reflective of what we are seeing at ground level.
The rental market in Galway is very strong & as an auctioneer at ground level we see significant demand for any rental property we put on the market.
It’s worth noting that cash buyers make up just below half of the market. And Central Bank research indicates that these buyers typically snap up properties at the lower end of the market that are seen as being more suitable for renting. So while we don’t know where this cash is going, it’s probably safe to assume that some of it is going into properties for rent.
Rents are attractive for buy to let investors but the prices are nearly back to the boom level, thus decreasing yields achieved.
Galway renters face further difficulty in so far as the is significant demand from students of NUIG & GMIT, staff of UCHG, several industrial estates & a booming tourist industry – all of whose workers need to live.
As prices both for rental properties & properties for sale – it is becoming increasingly difficult for people to both pay rent & also save for a deposit. This is making tenants stay longer in their rented homes & not freeing up the property for other prospective tenants to move into.
It seems this is not the case only in Galway & throughout the country. This Galway auctioneer, for one, is interested to see where this cycle ends!