THE GOVERNMENT’S RECENT rental market changes will boost rent growth for the country’s biggest private landlord and give it a “big increase in returns”, according to analysts.

In its latest bulletin, Davy stockbrokers expressed confidence for shareholders of Ires Reit thanks to the recent alterations in the rental market by the government.

It explained that the new regulations, allowing landlords to re-let properties at market rents, will mean happier days for investors.

Under the government’s attempts to reform the private rental market, landlords will be allowed to hike rents in instances where tenants leave homes voluntarily, although not if they are evicted.

Davy said that tenancies turning over “should lead to rent growth for Ires of around 4% per annum”, up from a maximum of 2% previously.

A share in the company – whose full name is Irish Residential Properties Reit – currently costs around a euro, while Davy forecasts that this could grow to €1.41 thanks to the reforms.

In recent briefings on the health of the company – which has up to 3,700 apartments in Dublin – Davy noted that its occupancy rate was a “exceptionally strong” 99.7%, which it said reflects an “imbalance” in the rental market and fewer options for renters.

The company recently came under a spotlight by regulators after tenants complained that Ires Reit was trying to introduce monthly €200 ‘common area’ fees to some of its apartment blocks.