Landlord exits accelerate as rental supply tightens and house prices continue to rise
REA survey highlights impact of rent controls on sales activity and availability of family homes
24 March 2026 | đŸ“§Â editor@ipropertyradio.com
A sharp increase in landlord sales across Ireland is intensifying pressure on an already constrained rental market, with new data indicating a growing shortage of family homes available to rent.
The latest REA Average House Price Index shows that landlord-driven sales now account for 29% of all transactions nationally, up from 21% a year ago. In several counties, including Carlow, Cork, Donegal, Kerry, Limerick, Longford, Meath, Monaghan, Roscommon and Waterford, agents report that 40% or more of sales are linked to landlords exiting the market.
The trend has accelerated following the introduction of nationwide Rent Pressure Zones on 1 March. In Limerick city, the impact is most pronounced, with 60% of all sales attributed directly to landlords leaving the sector.
REA spokesperson Seamus Carthy said the consequences are already evident on the ground, with tenants struggling to secure alternative accommodation after receiving termination notices.
He noted that many small landlords are exiting despite long-standing tenant relationships, but are reluctant to displace tenants who have nowhere else to go. This is leading to situations where tenants remain in properties beyond termination dates due to a lack of available rental options.
The survey indicates that this shift is creating a structural gap in the rental market, particularly for family housing. Anthony McGee of REA McGee in Dublin said that while apartment delivery has increased, much of it is not suitable for households seeking space for families, pets or additional vehicles.
He also pointed to demographic and financial factors influencing landlord decisions, including an ageing landlord base and reluctance to commit to longer-term rental arrangements where mortgage timelines or perceived asset values may be affected.
At the same time, some tenants facing eviction are transitioning into the purchase market, particularly in more affordable suburban locations such as Tallaght.
Despite the increase in supply from landlord sales, house prices continue to rise. The average price of a three-bed semi-detached home increased by 1.5% in the past three months to €364,747, representing an annual increase of 7.67%, although this marks a moderation from the 9% annual growth recorded six months ago.
In Dublin, prices rose by 1.6% in the quarter to €595,453, with annual growth of 6.6%. However, the proportion of first-time buyers in the capital has declined from 50% to 39% in the past six months, as some buyers adopt a wait-and-see approach in response to evolving rental legislation.
Selling times in parts of Dublin have also increased, with transactions in north city areas now taking an average of eight weeks. Agents report slower bidding activity, driven in part by expectations that increased landlord sales could soften prices, although properties continue to achieve or exceed valuations.
Outside Dublin, price growth remains steady. In the major cities, average prices rose by 1.2% to €378,250, with homes selling in approximately four weeks. Galway recorded relatively stable growth of 0.8% to €398,000, while Cork prices increased by 1.2% to €415,000, representing a 5% annual rise.
In Limerick and Waterford, prices rose by 1.4% to €350,000, with Waterford recording a stronger annual increase of 9%. In larger towns, prices increased by 2% in the quarter and 9% annually to €281,287, with Cavan seeing the highest quarterly growth at 5.6%.
Agents also report a growing premium for energy-efficient homes, with the price gap between A-rated and C-rated properties increasing to 13%, up from 10% at the end of last year.
While increased supply from landlord exits has not yet dampened prices, industry feedback suggests longer-term implications for the rental market. Cork-based agent Michael O’Donoghue said that while prices are likely to continue rising due to limited stock, the full impact of rent controls will become more evident as notice periods expire and rental supply tightens further.
In commuter counties, prices rose by 1% to €377,185, with demand increasingly focused on properties requiring renovation, supported by grant incentives.
The data points to a market in transition, where policy changes are reshaping both tenure patterns and supply dynamics, with knock-on effects across rental availability, buyer behaviour and pricing trends.
