The numbers of properties where notice of termination was served increased by the 10 per cent in light of new proposed regulations coming in 2026. Landlords with rent-capped properties have been exiting the rental market due to low rental returns with no option to increase rents with sitting tenants above 2 per cent per annum.
The volume of rental stock increased by 8 per cent even with a large volume of landlords vacating the market. We have seen new investors come into the market looking for high rents. The main avenue of purchase has been through private pension funds and company structures. There has been an odd investor buying personally but the tax burden discourages most.
Rents payable
Rents have continued to remain strong across Galway city and county due to the lack of rental properties. The rental team at O'Donnellan & Joyce (ODJ ) has seen a rise in the number of enquires for listed rentals. The main concern the team find with enquiries is the level of rents payable. A lot of the enquiries are coming from tenants which have been served notice by landlords vacating the market. Most have had long tenancies at low rents and now they face massive rises in the rent they are required to pay to secure rental accommodation.
New landlords are aware of ever-changing legislation regarding rental properties and are choosing to hire specialised and licensed property agents to act on their behalf instead of doing it themselves. These costs are tax deductible against the rental income making it financially wise for landlords to appoint a licensed agent.
Projection for 2026
The rental market is performing well for Q4 2025. It is predicted that rentals in 2026 will continue to remain strong. There is a large demand from tenants and the stock levels are not increasing enough to meet demand. There will be an abundance of tenants looking for accommodation after being served notice by landlords exiting the market next year. This gives good opportunity to investors to acquire rental properties to let out, at a good return.
ODJ's biggest achievement of 2025 has been an increase of 8 per cent in rental stock. The company has a mix of individual landlords and private pension fund landlords. ODJ are on the national panel for all major pension panels. Whilst most of the company's business is locally in Galway, its national presence is increasing year on year.
Investment
The buy-to-let (BTL ) market will remain strong in 2026 as inflation and negative interest rates in banks continue to punish those with cash in the bank. A lot of investors know that bricks and mortar are a solid long term investment. Property is a physical asset so investors know it’s not going anywhere and the large demand for rental accommodation makes the BTL investment attractive.
O’Donnellan and Joyce will be on hand to provide the required professional management advice to investors nationwide. For further information, please contact Jamie Costello of O’Donnellan & Joyce Auctioneers.
