The Government’s announcement of nationwide rent pressure zones has sparked a sharp increase in landlords selling their properties, with some areas reporting that over 80% of recent sales are from exiting landlords.
The Real Estate Alliance Average House Price Index reveals that the June announcement was followed by an immediate spike in landlord sales across many areas now covered by the legislation. REA agents in Carlow, Kerry, and Waterford report that over 40% of their sales in the past three months were from landlords, with this figure rising to 60% in Limerick city.
The exodus reached its peak in Nenagh, Tipperary, where departing landlords accounted for 80% of sales in the last quarter. The increased supply resulted in a 6% fall in sales prices in the area.
REA spokesperson Seamus Carthy warned that similar patterns could emerge in upcoming quarters as landlords focus on the current rent pressure zone expiry date of February 28, 2026. “While no one wants to see landlords selling homes, the consequent softening of prices illustrates the corrective effect that even a modest increase in supply can have on the market in our towns,” he said.
The survey found that the average selling price of a three-bed semi-detached house rose 1.6% in the past three months to €353,458, representing a 9.1% annual increase. However, Dublin’s rate of increase has more than halved, with agents reporting significantly fewer viewings and properties taking five weeks or more to reach sale agreements.
Dublin prices rose just 0.8% in the last three months, down from 2.6% in the second quarter. The average three-bed semi in Dublin now sells for €577,360, an annual increase of almost €45,000 or 8.4%.
Anthony McGee of REA McGee in Tallaght noted the changed market dynamics: “Where agents in Dublin are used to having ten people viewing a property, it is now far fewer, and if a home is not priced competitively, it will not attract interest.”
Helena Fitzgerald of REA Fitzgerald Chambers attributed the slowdown to economic uncertainty affecting buyer confidence, with people becoming “far more careful and slower to put a bid on a property.”
The survey also revealed that properties with A-rated Building Energy Ratings command a 17% premium over C-rated properties, reflecting increased demand for retrofitted homes.