Residential rents rose to their highest ever level, surpassing the previous 2008 peak for the first time according to data published by the CSO last week.
The data shows that rents nationally are now 35% higher than the 2011 trough, while house prices are up 32% since their trough in early 2013.
According to Goodbody Stockbrokers, “This has led to remarkable stability in residential yields on a national basis. We estimate that the residential yield now stands at 5.5% and has been close to this level for almost four years. Yields got as low as 3% in the mid-2000s.
“At this level, the yield available on residential property is still attractive. The problem, though, is the threat of political interference in the rental sector, with speculation that some form of rent control (“rent certainty”) will be announced soon, possibly in the budget.”