“42,300 fewer rental properties held by small private landlords since January 2020”
Statement by Marian Finnegan, Managing Director, Sherry FitzGerald
June 30th, 2025
Sherry FitzGerald, Ireland’s largest estate agency, today reported a net loss of approximately 42,300 rental properties owned by private investors from January 2020 to the end of March 2025. This ongoing trend of landlords exiting the sector, which has been evident over the past decade, has become particularly pronounced in recent years, underscoring the mounting challenges faced by the rental market.
This trend continued throughout the first half of 2025, with only 9% of second-hand homes purchased through Sherry FitzGerald bought by investors, while 31% of properties sold were from investor vendors. The depletion of small, private landlords from the rental market highlights the urgent need for increased investment in the Private Rented Sector (PRS).
Recent legislative changes, such as the expansion of Rental Pressure Zones nationwide and upcoming adjustments to the rent system in March 2026 — including allowing landlords to reset rents to market rates between tenancies — represent important steps forward. However, more comprehensive action is required to make apartment construction more viable, especially to enhance supply within the rental sector.
Marian Finnegan, Managing Director, Sherry FitzGerald commented, “Ireland’s relatively stringent rent controls have led investors to seek more favourable markets in recent years. While the upcoming changes to rent caps for new-build apartments in March 2026 are a positive development, attracting the level of private capital necessary to meet the demand for 56,000 new units annually will require far more robust incentives.”
Supply constraints in the rental market are mirrored in the broader residential sector, where a limited availability of second-hand properties continues to place upward pressure on prices. Our latest analysis of price trends confirms sustained growth in residential property values, primarily driven by the ongoing shortage of second-hand stock.
In Q2 2025, our analysis shows that the average value of second-hand homes in Ireland rose by 1.6%, bringing the total increase for the first half of the year to 3.9%. Over the past 12 months, property values have risen by 7.4%, further highlighting the ongoing challenges in the housing market.
Marian Finnegan noted, “The persistence of price growth into the first half of 2025, despite global uncertainties, reflects the continued shortage of second-hand supply, which remains a key factor driving price increases in the residential market.”
In Dublin, the average value of second-hand homes increased by 1.5% in the three months to the end of June, with prices rising by 4.2% in the first half of the year. On an annual basis, price growth in the capital reached 7.4%.
Outside of Dublin, price growth was more pronounced in the quarter, at 1.8%, resulting in an annual increase of 7.2%. Cumulative price growth for the first six months of the year outside the capital stood at 3.5%.
A review of transaction activity for Q1 2025 showed 9,743 housing transactions by household buyers, a 1.4% increase compared to the same period in 2024. However, activity in the second-hand market declined by 2.1%, with approximately 7,833 second-hand units sold in Q1, reflecting the severe supply shortage in this segment.
In contrast, the new homes market demonstrated strong growth, with a 19.3% increase in transactions compared to the previous year. However, this amounted to just 309 additional units sold, bringing the total to 1,910 transactions. The Greater Dublin Area (Dublin, Kildare, Meath, and Wicklow) remained the focal point for new housing activity, accounting for approximately 50% of all new home transactions to the end of March.
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For any further information, please contact:
Jill O’Neill
PR Director
Sherry FitzGerald Group
Ph: 01 237 6500 / 086 252 3277
Marian Finnegan
Managing Director, Residential & Advisory
Sherry FitzGerald Group
Ph: 01 237 6341 / 086 814 8251
