Landlords leaving market has major impact on Waterford property prices

The price of the average second-hand three-bed semi in county Waterford has risen by 1.7pc to €290,000 in the last three months, according to a national survey by Real Estate Alliance.

The announcement of a nationwide rent pressure zone has triggered a sharp increase in landlords exiting the housing market, the REA Average House Price Index shows.

In Dungarvan, the exodus of landlords was a factor in 40pc of sales in the last quarter.

The market in Waterford city rose by 2pc this quarter, with average prices now at €333,967.

Across the county, the average time taken to reach sale agreed is eight weeks, with 36pc of homes being sold to first-time buyers.

“There is a noticeable increase in landlords exiting by reason of the pending changes to the Residential Letting legislation,” said Eamonn Spratt of REA Spratt, Dungarvan.

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The REA survey also found that Waterford properties with a BER rating of A commanded an average 25pc premium over C-rated stock – reflecting the rising attractiveness of retrofitted homes.

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 announcement of a nationwide rent pressure zone has triggered a sharp increase in landlords exiting the housing market, the survey showed.

The Government’s announcement in June was followed by an immediate spike in landlord sales in many areas now included in the legislation.

REA agents in Carlow, Kerry and Waterford have reported that over 40pc of their sales are attributable to landlords in the past three months – with that figure rising to 60pc in Limerick city and 80pc in Nenagh.

The actual selling price of a three-bed, semi-detached house across the country rose by 1.6pc in the past three months to €353,458, a 9.1pc overall rise annually.

The rate of increase in Dublin has more than halved in the past three months, with REA agents reporting a marked drop in viewings in the capital and homes now taking five weeks or more to reach sale agreed.

Selling prices in Ireland’s major cities outside Dublin rose by 2.2pc to an average of €368,492 – an 8pc annual increase.

Homes in the country’s large towns continue to show growth nationwide, 2.2pc this quarter and 10.7pc on last September to an average of €269,199.