Shortage of rental property may kick start the property sales market

 Shortage of rental property may kick start the property sales market 

 

With The Irish Times declaring it is a landlord’s market again as shortage of rental properties pushes up rents, which helps property sales, it might be the frequently demonised landlord that helps kick start the property sales market.

 

When rents increase, the return to investors increases and with returns are higher than they have been for many years, investors start to buy again, helping to kick start the market. This can be seen in the number of investors buying at auctions and estate agents reports of the number of investors buying for cash.  Prices start to rise, as we have seen in reports this month, and a little confidence starts to creep back.

 

There are still a lot of problems and this crisis has a long way to run, but supply and demand always creates the markets and when you see 3 lenders offering finance at a recent auction, albeit with a lot of hoop jumping required to obtain it, we are indeed seeing green shoots.