A recent rise in landlords exiting the housing market is set to sharply increase in the first months of 2026, a new house price survey has revealed.
The impending nationwide rent pressure zone at the end of February has seen a 38pc annual increase in landlord sales in many areas now included in the legislation, the REA Average House Price Index shows.
Over 60pc of sales in Limerick city are down to landlords selling their properties, with agent Pat Dooley of REA Dooley warning that the Government are walking into an even bigger rental crisis.
“We expect that the first quarter of 2026 will see a further sharp rise in landlord sales,” said Mr Dooley.
“We have had numerous enquiries into our offices around the changes, and we are expecting a substantial rise in instructions.
“While this might help the ever-growing shortage of stock for the sales market, it will inevitably be to the detriment of the rental market.”
REA agents in Carlow, Kerry, Longford, Monaghan and Tipperary all attribute 40pc or more of their sales to the upcoming change in rules, and throughout the country there are consistent reports of rented properties about to go on the market.
“Across the country, we are seeing small landlords with one or two rental properties being faced with a stick or twist decision with a deadline of February 28,” said REA spokesperson Seamus Carthy.
“In the face of uncertainty over the legislation and six-year leases, people are either opting to sell now, or deciding to keep the property as a long-term pension investment.
“Landlords, by and large, do not want to be tied into long leases. Even if they are happy with their tenancy, there may be varying reasons why they need the property back in the short-term future.
“We are seeing a large increase in notice periods being served across the country, and a subsequent rise in landlords looking to go to the market in the new year – especially those whose mortgages may be coming to an end.
“This will all have an impact on the supply of rental stock nationwide.
“It is no coincidence that following a surge of landlord sales in Tipperary in Q3, there are now little to no rental properties on the market in Clonmel, according to agents REA Stokes and Quirke.”
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 1.6pc in the past three months to €359,417.
This represents an 8.7pc overall rise annually – a gradual slowing from the 10.3pc increase registered six months ago.
Actual selling prices in Dublin city rose by 1.5pc in the last three months, with the average three-bed semi in the capital’s postcode areas now selling at €586,000, an 8.1pc annual rise.
The percentage of first-time buyers purchasing in Dublin dropped from 50pc to 42pc in the last quarter of the year.
“We are certainly seeing evidence of buyer fatigue among first-time buyers. They have spent the past ten months chasing a house and in many cases are holding off until the new year for both more properties to hit the market,” said Mr Carthy.
Selling prices in Ireland’s major cities outside Dublin rose by 1.3pc to an average of €373,750 – a 7.4pc annual increase.
An increase in supply in the final quarter saw prices in Galway remain stable at €395,000 – a 6.8pc annual increase – in a busy market with a lot of active buyers according to REA McGreal Burke.
“With the scarcity of stock and falling interest rates, we predict the second-hand market will continue to rise into next year,” said Michael O’Donoghue of REA O’Donoghue & Clarke, Cork, as prices on Leeside increased by 1.2pc this quarter to €410,000 – an annual rise of 5%.
In Limerick city, prices increased by 1.5pc to €345,000, in a quarter which was heavily influenced by landlords exiting the market.
Prices in Waterford city rose by 3.3pc in the quarter to €345,000 – a 10.6pc annual increase.
Homes in the country’s large towns showed the biggest increases nationwide, 1.75pc this quarter and 9.9pc on last December to an average of €275,611 – with homes taking one week longer to reach sale agreed, at five weeks.
Prices in commuter counties rose by 1.6pc to €373,513, and while supply continues to cause issues, there is an anticipation of further landlord sales across the area in the new year, with REA Brophy Farrell in Kildare also noting the impact of new bridging loans for people downsizing.
