A new Census report confirms the continued expansion of the rented sector in Ireland. In total 497,111 households were renting on Census night last April, up 22,323 from the 2011 figure. Of these 309,728 were renting from a private landlord – an increase on the 2011 figure and a total that matches very closely with the 312,200 estimate previously highlighted by Savills.

Commenting on the figures Dr. John McCartney, Director of Research at Savills said;

“These data corroborate our conclusion that, far from contracting, the private rented sector is expanding. The number of people living in rented accommodation is growing as is the number of rented properties. Ireland’s young demographic, along with high house prices and tight mortgage lending, have driven this demand for rented property. And with yields on residential property averaging 6.3% (compared with the average deposit rate of 1.08%) cash investors are more than happy to play the role of landlords”.

Despite the recent restriction of rental growth to 4% per annum in designated pressure zones, Savills says that high starting yields, the expectation of continued low interest rates, and prospects of strong capital appreciation as house price inflation takes off again, mean that investors will remain active in the market.