Rental market about collapse ?

[mmrebel]

Rents fall 5% in first three months
A survey carried out by property website Daft.ie has shown that average rents across the country fell by 5% in the first three months of this year.

Daft.ie said the average national rent was now €840 a month, down 16% from the same period last year.

The largest falls in the first quarter of this year were in Dublin and Limerick city, where rents dropped by 6.5%. Daft.ie says rents nationwide have now fallen for 14 months in a row and are 17.5% lower than the peak in early 2008.
Daft.ie economist Ronan Lyons said the market was bearing the brunt of too much supply and not enough demand. The number of properties for rent is at an all-time high of 23,000, according to the website's report.

The report is based on an analysis of all rental properties advertised on Daft.ie since January 2009, including 250,000 since January last year.
RTÉ Business: Rents fall 5% in first three months

I think this was inevitable anyway the basic laws of supply and demand were bound to kick in at some stage , lots of anecdotal evidence out there about good deals to be had if your renting.

[Duth Ealla]

If the relationship between rent and sustainable/realistic house prices is supposed to be true then rents will have to drop very significantly in line with housing prices. But that might be a slow long term unwinding i reckon.

[seabhcan]

Advertised rents have dropped 5%. Actual rents have dropped 30-40% in my experience.

[mccafferty cat]

Correct me if I'm wrong, but this survey (by its very nature) would not take any account of rent reductions agreed privately between landlords and tenants?

Advertised rents on DAFT are likely to be falling at a much slower rate than rents in the real world, so isn't it likely that the fall is much steeper?

[feargach]

Well, who would have guessed. The rental market gets flooded with supply from "accidental landlords" (people who bought houses with the intent to sell at a profit, but are in negative equity, so they need to rent out the house to postpone repossession) just as the number of employed people plummets to slash demand.

Yet to everyone's amazement, this causes prices to reduce. Gosh!

We have been making decisions based on an old wive's tale that the Japanese publicly disproved two decades ago: house prices only ever go up.

[Factorem]

It's the commercial rents I'd be most worried about. They have a direct impact on our competitiveness.

A high-cost residential property market is secondary when it comes to attracting businesses and high quality workers who actually want to live here.

When is the floor on residential property (i.e. the landlords' dole) going to be removed?

[Cael]

It's the commercial rents I'd be most worried about. They have a direct impact on our competitiveness.

A high-cost residential property market is secondary when it comes to attracting businesses and high quality workers who actually want to live here.

When is the floor on residential property (i.e. the landlords' dole) going to be removed?

What do you mean by the floor on residential property?

[monroe99999]

What do you mean by the floor on residential property?

the guaranteed state welfare payment that landlords get from the government. costs the taxpayer about €600 million a year and in effect sets a floor below which FF won't let landlords rental payments go.

[advertismo]

Their was a culture of rent-fixing amongst letting agencies & landlords; like the car-sales cartels.
Now it's every man for himself undercutting each other to nab a tenant.

[Cael]

the guaranteed state welfare payment that landlords get from the government. costs the taxpayer about €600 million a year and in effect sets a floor below which FF won't let landlords rental payments go.

What is it called?