House price increases tame in latter half of 2025

Residential property price growth slowed significantly in the final six months of 2025, easing to 2.87% from 5.05% in the first half of the year, bringing the overall annual increase to 7.92%, according to the latest Residential Property Price Barometer from the Institute of Professional Auctioneers and Valuers (IPAV).

The barometer tracks sale prices achieved by auctioneers for three- and four-bedroom houses and two-bedroom apartments across 41 locations nationwide.

In Westmeath, prices in the second half of the year rose by 3.91% for three-bedroom homes, 1.93% for four-bedroom properties and 1.55% for two-bedroom apartments compared with the previous six months.

While no area recorded negative growth, increases were closely aligned across property types, with none exceeding 5.83%. Unlike previous reports, there were no clear regional or property-type patterns, and the top 10 increases ranged between 3.85% and 5.83%.

IPAV chief executive Genevieve McGuirk said auctioneers report that homes are taking longer to sell, reflecting growing caution among buyers. She pointed to cumulative price rises of about 45% since the Covid-19 pandemic in 2020, along with heightened geopolitical tensions.

She also referenced a recent Red C and Gallup International survey of 60 countries, which ranked Ireland among the 10 most pessimistic about the year ahead.

Ms McGuirk said landlords are continuing to exit the market ahead of new rent legislation due to take effect on March 1, and some agents are reporting that up to 60% of current sales stem from the new rules.

While that may boost short-term supply, she warned of longer-term risks to the second-hand market and rental stock. A sustained decline in rental properties could further limit tenant options and reduce flexibility for buyers.

Although government investment in new builds continues, agents report limited development in many areas, including parts of the commuter belt. A healthy second-hand market, she said, remains essential to affordability and choice, particularly in Dublin.

Tenants facing annual rents of almost €19k pa in Westmeath

Rents in Westmeath have surged to unprecedented levels in the last year, and the latest Daft.ie Q4 2025 Rental Report paints a stark picture of a market spiralling further out of reach for ordinary families.

The average listed rent in Westmeath now stands at €1,575 per month, marking a dramatic 13.2% increase year on year.

Just five years ago, renters in the county were paying hundreds less each month.

Now, tenants face annual costs approaching €19,000 – a figure that would once have been associated with Dublin alone.

For a one-bed apartment, typically, tenants were paying €1,133 per month; for two-bed apartments, typical rents were €1,538, and just marginally less than that – €1,511 – for two-bed houses. Rents for three-bed houses average €1,904, and for four-bed houses, €2,034.

The cost of renting a studio works out at an average of €972 monthly.

Not all renters are looking to rent an entire property, and the Daft study finds that to rent a double room in a house, with an ensuite averages €672, or €603 without an ensuite; a double in an apartment without an ensuite averages €634.

Solo renters also need a lot of funds: a single room in a house with an ensuite is typically €578, and without an ensuite, €530.

The report also indicates that availability has collapsed to crisis levels. At the time of the publication of the report, there were fewer than 10 homes available to rent across the entire county.

Westmeath is not suffering in isolation – but it is among the hardest hit in the midlands region.

In neighbouring Offaly, average rents have climbed to €1,487, up 12.4% year on year. In Laois, rents have reached €1,521, rising by 11.8% and while Longford remains the cheapest of the four counties, even there rents now average €1,302 – an annual increase of 10.9%.

The report shows that rental inflation nationally remains in double digits, but Westmeath’s 13.2% annual rise outpaces several neighbouring counties.

A typical two-bed home that might have cost €1,300 per month just two years ago now commands closer to €1,600. That is an additional €3,600 per year – equivalent to a second car, a year’s childcare, or the bulk of a deposit for first-time buyers.

Many households now spend well above the recommended 30% of net income on housing.

For young workers in Mullingar and Athlone, the prospect of saving for a mortgage deposit while paying €1,575 per month in rent looks increasingly unrealistic.