Covid-19: Rents dropped an average 3.3% this year in Ireland

Compared to June 2019, rents dropped by an average 3.3% last month.

Rental prices in Ireland have decreased moderately across the country due to the outbreak of Covid-19. 

According to the Economic and Social Research Institute (ERSI) the average drop of in rents across the country is due to the impact of the virus on the labour market. 

Figures released by the Residential Tenancies Board Rent Index show when compared to June 2019, rents fell by an average of 3.3%. 

The ERSI's Senior Research Officer, Conor O’Toole said landlords have had to lower rents as a direct result of shocks to the labour market. 

Mr O'Toole said: "It's very clear that the labour market shock has been absolutely huge from the Covid-19 pandemic. 

"We see in April that the pandemic adjusted unemployment rate had gone to 30%.

"It is not unsurprising the major economic shock has subdued demand in the rental sector and put downward pressure on price."

The ERSI also believe rent prices are likely to continue dropping for as long as the economy is impacted by Covid-19. 

"It is very clear now that the Covid-19 disease is here to stay with us for a much more protracted period which means that the economic recovery is likely to be slower than we might have expected.

"The longer and deeper the economic shock, the more likely it is that rents will continue to moderate and likely decline in line with the more challenged economic environment," said Mr O'Toole 

Month on month drops were also noted in three of the four months since March as public health restrictions were brought in.

The Institute of Professional Auctioneers & Valuers, (IPAV) said the latest figures are "hardly surprising."

Pat Davitt, IPAV Chief Executive said: “Demand and supply in residential lettings is changing utterly, particularly in high demand urban areas.

“The downward pressure on rents evident in today’s report is likely to be sustained for a period. 

"Factors such as employment levels and any new work patterns to emerge will play an important part."

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