Dublin’s Rental Landscape Shifts: Corporate Landlords Gain Ground While Rent Pressure Zones Face Scrutiny

Dublin’s rental market is undergoing a significant transformation, with large corporate landlords now managing over a quarter of all private tenancies in the capital. This increase, coupled with ongoing debates about rent control measures, paints a complex picture for renters and property owners alike.

Corporate Landlords on the Rise

Data from the Residential Tenancies Board (RTB) reveals a growing presence of corporate landlords in Dublin. Landlords owning 100 or more properties accounted for 26% of registered private tenancies at the end of 2024, a notable increase from 22% in 2023.

• Market Share: Landlords with 100+ properties now manage over a quarter of Dublin’s private rentals.
• Contrast: Individual landlords (one tenancy) account for 23% of the market.

While the RTB doesn’t name specific companies, major players in this sector include Ires Reit, Kennedy Wilson, and Ardstone Capital.

Economic Implications and Housing Policy

The rise of corporate landlords sparks debate about the direction of Irish housing policy. Taoiseach Micheál Martin has advocated for incentivizing private investment to increase housing supply. However, critics argue that this approach leads to high-end, unaffordable rental properties, exacerbating the housing crisis.

Opposition parties argue private investment building results in high-end, unaffordable rental properties that would only deepen the housing crisis.

Rental Costs: A National Overview

Across Ireland, rental costs continue to climb. The RTB rent index, compiled with the Economic and Social Research Institute (ESRI), indicates that average rents for new tenancies rose by 6.4% to €1,693. Existing tenancies saw a 4.7% increase, reaching €1,429.

• National Average (New): €1,693
• National Average (Existing): €1,429

Dublin’s Rental Premiums

dublin remains the most expensive area to rent. Existing tenancies average €1,870,while new tenancies command an average of €2,226.

Limerick’s Soaring Rents

Limerick city experienced the most significant rent increase over the past year—a staggering 12%.

Tenancy Trends and Landlord Behavior

Nationwide, the number of private tenancies has increased to 240,964, with private landlord numbers rising by 4.5% to 105,594. Approved Housing Body tenancies also saw substantial growth of 14.5%,exceeding 50,500.

Interestingly, fewer landlords are terminating tenancies. notices of termination decreased by 7.5% in the fourth quarter of 2024 compared to the same period in 2023, totaling 3,706. The proportion of landlords selling properties has also declined by over 5%,suggesting a slowing down of landlords exiting the market.

Rent Pressure Zone (RPZ) Enforcement and Future Considerations

The RTB is actively enforcing Rent Pressure Zone (RPZ) regulations. In October 2024, a compliance campaign targeted landlords associated with over 16,000 “tenancies of concern,” where rents exceeded the allowed 2% threshold within RPZs.

So far 300 landlords have updated their tenancy record,saving affected tenants an average of €97 per month. A sample of 170 cases were escalated for investigation and some €35,000 in overpaid rent has been returned to tenants.

The second phase of the compliance drive will focus on landlords who have not yet engaged with the process, potentially leading to investigations and 1,000 spot checks.

This enforcement effort coincides with a review of RPZs by the Housing Agency. One choice being considered is a “reference rent” system, which would link rent increases to comparable local properties rather of the current 2% cap.

Rosemary Steen, director of the RTB, said “we can see the RPZs are performing well, notably in Dublin”, but that it was a “matter for the Government” to determine what kind of rent controls are in place.

Steen also noted that a reference rent system would require more data collection and raised “concerns” about implementation speed. “Any changes would require changes in how we are resourced,” she said.

The Path Forward

Dublin’s rental market is at a crossroads. The growing influence of corporate landlords, coupled with evolving rent control mechanisms, presents both opportunities and challenges. As the Housing Agency reviews RPZs and explores alternative approaches,stakeholders must prioritize affordability,fairness,and sustainable housing solutions. The next years will be pivotal in shaping the future of renting in ireland. stay informed and engage in the conversation to ensure a balanced and equitable housing market for all.

dublin’s rental market is abuzz with changes: corporate landlords are gaining ground, rent pressure zones are under scrutiny, and tenants are feeling the pinch. we sat down with Dr. Aine O’Connor, a renowned housing policy expert, to discuss these shifts and their implications.

Corporate Landlords on the Rise: A New Norm or Cause for Concern?

Archyde (A): Dr. O’Connor, we’re seeing corporate landlordsnow managing over a quarter of Dublin’s private rentals. Why is this happening, and should tenants be worried?

Dr. Aine O’Connor (AO): Thank you for having me. The rise of corporate landlords can be attributed to several factors. Institutional investors are drawn to the Irish market due to its high yields, and they bring significant capital.Though, while they may offer professional management, concerns remain about affordability. These corporates frequently enough target high-end properties, exacerbating housing crises in vulnerable areas.

Housing Policy: Incentivizing Investment or Driving up rents?

A: Taoiseach Micheál Martin has advocated for incentivizing private investment. Critics argue this could lead to high-end, unaffordable properties. What’s your take?

AO: Both sides have valid points. Incentives can increase housing supply, which is crucial. But, we must ensure this supply meets the needs of those at lower income levels. We need smart policy that drives affordability, not just quantity.

Rent Costs: The National Picture

A: Rents continue to climb nationwide. How does this affect mobility, affordability, and quality of life for tenants?

AO: Soaring rents limit geographic mobility, trapping people in areas they can afford but may not desire. It also impacts affordability, particularly for low- and middle-income tenants,essen-tially一种 músicas，通paying a greater proportion of their income on housing.This strains household budgets, pushing essential spending elsewhere.

Dublin’s Premium and Limerick’s Surge

A: Dublin remains the priciest, but Limerick saw a staggering 12% increase. Why are we seeing such varied trends across cities?

AO: Dublin’s high demand, fuelled by jobs and limited supply, keeps rents sky-high. In Limerick, we’re seeing increased investment and employment growth driving rental demand. However, without sufficient supply increase, rents spiral upwards.

Tenancy Trends and Landlord Behavior

A: There’s a growing trend of fewer landlords terminating tenancies. Is this a positive sign or a symptom of something else?

AO: It’s a mixed bag. While it could indicate increased stability for tenants, it might also signal landlords’ concerns about the regulatory habitat. We need more transparency and data to fully understand this trend.

Rent Pressure Zones: Capping Rents or Finding a Better Balance?

A: The RTB is enforcing RPZ regulations. Some suggest a ‘reference rent’ system could link rent increases to comparable properties.What are your thoughts?

AO: I welcome the RTB’s enforcement, but I’m cautious about reference rent systems. They could introduce complexities and delays in the process. We need a balanced approach that addresses affordability but doesn’t stifle supply or discourage investment.

The Path Forward: Priorities and Possibilities

A: What priorities should policymakers focus on to ensure a sustainable, fair housing market for all?

AO: Affordability must remain a key focus. Policymakers should encourage diverse housing supply, protect tenants’ rights, and facilitate investment models that drive affordability. transparency and data collection are also crucial for evidence-based policy.

A: Thank you, Dr. O’Connor, for sharing your insights. Our readers will surely appreciate your unique perspective on Dublin’s evolving rental landscape.

AO: My pleasure. It’s crucial to foster informed dialog around these critical issues.