There is a lot happening in the Waterford property market at the moment…
In relation to the residential rental market, in December, legislation capping rent increases at 2% per year in Rent Pressure Zones passed both Houses of the Oireachtas. This new law also provides for tenancies of unlimited duration.
I don’t see this being hugely problematic for landlords. Why not? I hear you say. When a tenant receives a fixed-term tenancy it is a tenancy that lasts for a specific amount of time. This is usually a period of 12 months. A “part 4” tenancy runs alongside a fixed-term tenancy, which means the tenant shall, after a period of 6 months become entitled to the provisions of a “part 4” tenancy.
This simply means that up until now that irrespective of the length of the fixed term lease, a tenant has an entitlement to remain in the dwelling for up to 4 to 6 years and the landlord can only terminate the tenancy on limited grounds. Mostly landlords give notice to sell their property or in few instances in the event that they wish to move back into the property.
Now with the new legislation instead of the entitlement to remain in the dwelling for up to 6 years, it means that tenants can stay for an unlimited duration. However, as before, a Landlord can still give notice if selling or moving back into the property.
In my opinion, if the tenant is good, the house is maintained, and the owner still wishes to keep the investment asset then happy days. It should not really have an impact. Keeping on track with rent reviews is important. However unfortunately with the RPZ coming in overnight to Waterford, some landlords did get caught with rents at levels well below the current market value. This is where it is quite unfair. As I always say when commenting on the property market, not all things are equal.
The website – www.rtb.ie is a very good resource for information on residential legislation.
As far as the sales market is going, there is a big demand for homes.
We are sale agreeing houses within one week and days in some instances. We are achieving anything from 5% to 15% over asking prices. Even coming up to Christmas the market was surprisingly strong. We sale agreed a beautiful four bedroom detached home in Lismore after 4 days on the market and one day of viewings. This property went significantly over the guide price with multiple cash buyers. As far as the residential investment market goes we have investment companies and funds buying off-market. The demand is very strong. Waterford is seen as great value and a good place to invest.
If you would like to know what your property is worth, please get in touch for a free market appraisal.
Cormac Finlay on Wednesday, January 5, 2022 in blog, property advice, Property News and Advice, property update, Rent Pressure Zone, rental prices, sell your home, Waterford, waterford property prices, Waterford Property Watch