Slowdown in buy-to-let market due to falling rents but demand stays strong

FALLING rents and an increased supply of rental accommodation have resulted in a slowdown in the buy-to-let market over the last year, but banks continue to report strong demand among borrowers.

Last week's figures from the Irish Auctioneers and Valuers Institute, which said that Dublin rents had fallen by an average of 4% during 2003, coupled with a continued rise in property prices, suggested that landlords found the year less rewarding than in the past.

Industry estimates suggest investors now account for between 15% and 20% of the property market.