New Year is a time for optimism. The Last Daft.ie Rental Report had the headline 'No end in sight for rental sector woes' and focused, in particular, on the lack of availability on the market. All of this was in the context of the tenth consecutive Rental Report where annual inflation in advertised market rents was above 10%.
So how, then, should we interpret the fall in inflation recorded in this latest report? Nationally, inflation fell from 12.4% in mid 2018 to 9.8% by the year end. This fall was seen in Dublin and the other cities, as well as in Leinster outside of Dublin. (Munster, Connacht and Ulster - outside the cities - are going the other way, with inflation at double - digit rates and two year highs.)
The first thing to note is that we are still discussing substantial price increases, even if in percentage terms the increases in key markets have fallen below a noteworthy threshhold. The average Dublin rent rose by €160 during 2018, compared to €180 in 2017. It is unlikely that any new or existing tenants will be celebrating just because the new all time high is less dramatically above the previous high than it was compared to the figure from two years ago.