Average Rents Fall Almost 12%

[Thomas22]

How much further can rents fall?

[broken link removed]

So much for the future, what of the present? An appropriate description of many economic indicators right now is summed up by the phrase 'cliff-diving'. It's a phrase economists have taken to using to describe everything from interest rates to trade volumes to employment to consumer spending. This is my fourth recession in my adult life and I can safely say I have never witnessed so many indicators change direction so fast nor move so swiftly in the wrong direction. We're living in a whiplash economy, brought to a sudden stop by a wall of fear.



One feature of cliff-diving indices is that the rate of decline accelerates. Maximum velocity is characterised by double digit figures. So it is with rents in Ireland: the year-on-year rate of decline in the Daft.ie National Rent Index accelerated from -3.2% in Q3 2008 to -12.2% in Q4 2008. The January 2009 rate of decline stood at -13%. Supply is outpacing demand.

 

[murphaph]

I'd like to see figures by region and by town. I dare say some places have seen much worse drops than 12%

 

[LennyBriscoe]

Had to reduce the rent I'm charging by 23%!

41 empty houses for rent in the town I live and tenants well aware of this fact! Bitter pill but have to move with the times!

 

[Butter]

Just as we once talked up the economy are we not in danger of overdoing it on the way down as well? I recently rented a property with a rent increase of 5.8% over the previous rent. Now granted I was probably on the low side of rent as I had good tenants there for a number of years and only raised the rent twice by small amounts over a 4 year period. But this current rent is still the highest I have achieved since i bought it in 2002 - and interest rates have come down so it's good news for me.
Location is such a big thing though - with so many properties for rent in smaller towns or where there is a lot of S23 then it will be harder I'm sure.

 

[Mommah]

Location is such a big thing though - with so many properties for rent in smaller towns or where there is a lot of S23 then it will be harder I'm sure.

For sure...my properties are in central Dublin locations and I'm already charging only mid range rents (using daft as bench mark) for good properties...so touch wood...no drop yet. In fact a room in one house was advertised a few months ago and I was amazed at the response.

Knocking on wood +++