A sharp nationwide rise in landlord sales is leading to a severe shortage of family homes to rent, a new house price survey has revealed.
The introduction of new rental legislation has seen a surge of tenants issued with termination notices, many of whom are unable to find alternative accommodation, the REA Average House Price Index found.
The survey found that REA agents in 10 counties (Carlow, Cork, Donegal, Kerry, Limerick, Longford, Meath, Monaghan, Roscommon and Waterford), attribute almost half - 40pc or more - of their sales to the change in rules – double that of three months ago.
The most striking evidence of landlord exodus with the advent of the nationwide rent pressure zones on March 1 was in Limerick city, where 60pc of all sales were a direct result of them leaving the housing market.
“We are seeing landlords issuing notices to tenants who are remaining in the property past their termination date because they literally have nowhere to rent,” said REA spokesperson, Seamus Carthy.
“Typically, this involves small landlords with one property who have formed a good relationship with a tenant over the years, but want to exit the market.
“However, they are not going to be the person who puts someone on the streets if they have nowhere to go to.
“Overall, landlord sales have risen from 21pc to 29pc nationally in the past year, and that has to have a significant knock on to the rental market.”
Anthony McGee of REA McGee in Dublin 24, feels that the rise in landlord sales will leave a section of society with a scarcity of family homes on the market to rent.
“We are building apartments to house the rental market, but many institutional lettings are unsuitable when people want to have a family, a pet or even a second car,” he said.
“Small landlords are an ageing population and many are not willing to commit to a fixed six-year term, because their mortgage may be up in less than that and they feel their property will be devalued with a sitting tenant.
“What we are also seeing is people who have been served with notice to quit looking to buy in more affordable areas like Tallaght.”
The REA Average House Price Index concentrates on the sale price of Ireland's typical stock home, the three-bed semi, giving an accurate picture of the second-hand property market in towns and cities countrywide.
The actual selling price of a three-bed, semi-detached house across the country rose by 1.5pc in the past three months to €364,747.
This represents a 7.67pc annual rise – slowing gradually from the 9pc increase registered six months ago.
With energy prices coming into focus, agents are reporting that there is a renewed focus on heating costs, with the A-rated v C-rated BER price premium rising to 13pc, up from 10pc at the end of December.
Actual selling prices in Dublin city rose by 1.6pc in the last three months, with the average three-bed semi in the capital’s postcode areas now selling at €595,453, a 6.6pc annual rise.
The percentage of first-time buyers purchasing in Dublin has dropped from 50pc to 39pc in the past six months, with agents citing a wait-and-see policy from buyers around the changes in rental legislation.
In Dublin’s north city post codes, time taken to sell has risen by two weeks to eight weeks.
“Bidding has slowed because some buyers are working off the assumption that if the market becomes flooded with landlord sales, then values will drop,” said Helena Fitzgerald of REA Fitzgerald Chambers in Dublin 7.
“However, properties are still selling on or above valuation and landlord sales in this area have been at consistent levels since the announcement of the new legislation.
“In many cases, ex-rental properties require extensive work to bring up to the standards of family homes, creating a value gap.”
Selling prices in Ireland’s major cities outside Dublin rose by 1.2pc to an average of €378,250 – a 6.5pc annual increase, with homes selling in four weeks on average.
An increase in supply in the first quarter saw prices in Galway remain relatively stable at €398,000 – a 0.8pc quarterly increase.
Prices on Leeside increased by 1.2pc this quarter to €415,000 – an annual rise of 5%.
“With the scarcity of stock, prices will continue to rise, however, it is clear that the new rent controls will have a detrimental effect on the future rental market once notice periods expire,” said Michael O’Donoghue of REA O’Donoghue & Clarke, Cork.
In Limerick city, prices increased by 1.4pc to €350,000, in a quarter which saw 60pc of sales attributed to landlords exiting the market and supply up from the same period in 2025, according to REA Dooley.
Prices in Waterford city rose by 1.4pc in the quarter to €350,000 – a 9pc annual increase.
Homes in the country’s large towns rose by 2pc this quarter and 9pc annually to an average of €281,287.
The biggest quarterly rise was in Cavan where prices increased by 5.6pc, as the market picked up in February, according to James Spring of REA Donohoe Spring.
“Most landlords who would like to sell have now sold, with only a small number remaining who want to sell but have long notice periods, and whose tenants are struggling to find alternative accommodation,” he said.
Prices in commuter counties rose by 1pc to €377,185, with Kildare agents REA Brophy Farrell highlighting a lack of supply but an increase in demand for properties in poor condition, helped by changes in renovation grants.
