Rents continue to hit all-time highs with 11.3% national rise – report

Rents have risen on average by more than 11% nationally in the 12 months from September last year, according to the latest report by property website Daft.ie.

The website’s latest quarterly rental report says the rise represents the tenth consecutive quarter in which a new all-time high for rents has been set, and also in which annual inflation in rents has been greater than 10%.

The figures are based on the asking price for rental properties.

Rents have increased nationwide by an average of 11.3% and Dublin is now 36% higher than it was in the last boom over ten years ago, according to the report.

South Co Dublin is the dearest area at €2,156 and the average rent nationwide now stands at €1,334.

In Limerick and Waterford cities, rents were around 20% higher than a year ago.

Rents in Galway increased by 16% in the same period, while in Cork rents rose by 13.7%.

Economist with Daft.ie Ronan Lyons said there is a mismatch between the housing that is being built and the housing that is needed.

Speaking on RTÉ’s Morning Ireland, he said housing for smaller household sizes is needed but property for larger households is being built.

“Very few new homes have been built over the last decade. And in fact the homes we need are  disproportionately homes for smaller households, for one and two person households, in and around the cities and in the rental sector.

“And if we look at what’s getting built at the moment, it’s disproportionately estate housing for sale for larger households.So there’s a mismatch between what we are starting to build again and what the country actually needs.”

He said rent pressure zones have not been effective because the underlying problem of a lack of supply remains and because these zones are self-policed it is unrealistic to expect tenants to argue with a landlord over prices they are being quoted.

“The average rent in Dublin is up by almost €1,000 a month, for those landlords that are charging market rents. But even across the country, outside Dublin, the average rent has increased by almost €400 a month from the lowest point  and is almost €200 a month more since the previous peak in early 2008.”

Meanwhile, the National Spokesperson for the Simon Community has also said the report shows clearly that the rent pressure zones are not working.

Speaking on RTÉ’s Today with Sean O’Rourke, Niamh Randall said the ongoing problems in the private rented market are clearly linked to the lack of supply.

She said today’s report shows the pressure is increasing.

Housing charity Threshold said they are hoping that Limerick will be announced as a designated rent pressure zone area in the next Residential Tenancies Board rent index report.

According to the Daft.ie report, rents in Limerick have risen by 20.3% in the year to September 2018.

Speaking on RTÉ’s News at One, Threshold’s Southern Regional Services manager Edel Conlon described the increases as “quite shocking.”

“As you can imagine people are frightened, they are getting tenancy terminations in the door, they are getting rent reviews in the door, not quite sure if they’ll sure if they will get help with that, not quite sure if they can afford it,” she said.

“Some may take thew chance and go and rent a property that they know they will be struggling with, you know just hope they can keep it going, but unfortunately for some it just falls apart.”