House prices unchanged but tenants miss rental payments: Surveyors    

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The prices of many homes are unchanged despite the huge economic uncertainty caused by Covid-19 but a significant number of tenants are struggling to pay their rents, according to a survey of estate agents.

The results of the survey by the Society of Chartered Surveyors Ireland of more than 260 estate agents also showed that activity has returned to levels before the onset of Covid-19 crisis earlier this year. 

“The figures reflect what agents have been saying on the ground since the reopening of property markets in early June," said vice president of the surveyors' group, TJ Cronin.

"Activity levels have been brisk due to pent-up demand, especially in the sales market. Confidence within the house purchasing market remains strong, especially among those who have been unaffected financially by Covid-19 or those that had finances in place,” he said. 

The survey found that most estate agents reported that the level of enquiries had increased, while two-thirds of agents said prices were unchanged. Nonetheless, over a quarter of the survey said values had declined, while 6% said that prices had risen.

Nonetheless, over a quarter of the survey said values had declined, while 6% said that prices had risen.

Amid the Covid crisis, 10% of properties were renegotiated which lead to a 3% fall on the agreed sale price, according to the survey. 

On rents, 8% of tenants had missed monthly payments during the crisis so far. 

“However new mortgage approvals and drawdowns are down, and the salaries of home purchasers are likely to be impacted as a result of Covid-19," said Mr Cronin. 

"As rental supports are reduced it is likely that the figures for rent arrears will grow," he said.  

"It’s also likely that the rental market for young professionals and students will be especially impacted because of Covid although as with house sales, the market will be underpinned by the well-documented lack of supply,” Mr Cronin said.

The Society of Chartered Surveyors Ireland reiterated that the time it takes to complete a sale needs to be shortened.