LAST UPDATE | 9 Feb 2022
THE NUMBER OF homes available for rent across Ireland has dropped to a new all-time low and led to a further spike in rents around the country, according to Daft.ie.
The fourth-quarter rental report from the property advertisement website notes that there were just 1,397 homes available to rent on 1 February nationwide. This is the lowest amount since Daft began tracking availability in January 2006.
In Dublin, 712 homes were available to rent at the start of this month, less than one-quarter of the average seen for February over the last two decades.
Outside of the capital, Daft notes that availability is less than one-third of the pre-pandemic level of February 2020 with 685 homes available to rent.
The average rent nationally now stands at €1,524 per month, an average of 10.3% higher than the same period in 2020.
The increase of 3% marks the biggest quarterly gain since mid-2017, according to Daft.
The average rent in Dublin is estimated to be €2,056, up 8.9% year on year. The city saw rents rise by 4.1% between September and December.
The rent increases were just as steep across other cities with a year-on-year jump of 6.3% recorded in Cork, 8.8% in Galway, 10.3% in Limerick and 11.3% in Waterford.
The sharp increase in rents around the country reflects a worsening of the unprecedented scarcity of rental homes, according to Associate Professor of Economics at Trinity College Dublin Ronan Lyons.
“The strong rebound in economic activity, as public health restrictions relax, has translated into a strong demand for rental accommodation,” said Lyons, who also authored the report.
“Coming at a time of very weak rental supply, this has pushed rents up further, with inflation at its highest rate nationwide since early 2018. The number of live rental ads is at its lowest ever on record, with fewer than 1,400 live ads on 1 February.
Lyons notes that the figures show that it is not a question of whether Ireland’s new rental homes will be occupied, but rather how fast: “As new purpose-built rental stock is completed, availability of rental homes will be better measured by capturing development-specific vacancy rates, as well as ads. An analysis of over 60 existing purpose-built rental communities indicates over 90% occupancy across their nearly 8,000 homes.
“Figures for a further 12 developments coming on stream in early 2022 suggest brisk take-up of new homes. Even if the 1,700 homes due to become available in the first half of 2022 were added to the existing stock of rental ads, the number of homes available to rent in Dublin now would be below the level seen a year ago.”
He added that the solution remains in the construction of large numbers of market- and cost-rental housing, to cater for tenants of all incomes while reform of rent controls would also enable new rental homes to be absorbed faster.
A rent control system that applies within tenancies, rather than across them, would make landlords less fearful of cutting rents in the face of weak demand. There is a clear win-win for policymakers, too, as such a system could be linked to an offer of indefinite tenancies, rather than the current cycle of six-year leases, reducing the uncertainty for landlords while bringing stability of tenure and rents to Ireland’s renter.
Threshold, the national housing charity, said the findings of today’s Daft report suggest a blatant disregard of the Rent Pressure Zone (RPZ) legislation, while those outside the RPZs “are now being left at the mercy of the market”.
Threshold chief executive John-Mark McCafferty urged all private renters to get in touch with the charity when they receive a rent review to check the validity of the rent increase.
“With the rising cost of living, it will become increasingly difficult for private renters to pay these increases, as well as their other bills. These renters will always prioritise the money required to keep a roof over their head, meaning they may go without heat or be forced to cut back on other essential expenditure.”
‘Out of control’
There has also been significant political reaction to the latest figures, with Social Democrats TD for Dublin Bay North Cian O’Callaghan saying rents are now “out of control” in the capital.
“Today’s Daft.ie report makes clear that ordinary workers and families are also increasingly being priced out of the rental market. Even the dribble of supply that is coming onto the market, is priced out of the reach of most ordinary workers,” he said.
The government’s response to this crisis has been to fiddle with rent caps, which are now set at 2%. Given the double-digit rent increases replete across the country last year, it is clear rent caps are nothing more than window dressing. They are doing nothing to stop sky-high rent increases.
Sinn Féin TD for Galway West Mairead Farrell said that rents are at a “crisis” point outside of the capital as well and that renters in other cities need the same supports seen in Dublin.
She called and Taoiseach Micheál Martin to intervene.
Regularly there are no houses to rent available in the Galway City under the HAP limits pushing people into homelessness. Homelessness has risen by 42% in the last twelve months in Galway,” she said.
As a measure to prevent the continued rise in homelessness would you (The Taoiseach) consider giving Galway HAP the same 50% flexibility as is given in Dublin.
Labour’s housing spokesperson Rebecca Moynihan said the problem is made worse by a lack of security for tenants.
“Unfortunately renters know whats side the government are on in this crisis. Security of tenure remains a huge worry for people and we know that it is renters in the private market who are most at risk of entering homelessness,” she Moynihan said this morning.
“This is because government have consistently chosen not to act on tangible measures to protect renters – a rent freeze until supply catches up with demand; stronger powers for the Residential Tenancies Board including the power to spot check rental properties; and to confirm that the retrofitting grant and substantial renovations be removed as a reason to evict people.”
With reporting by Rónán Duffy
Note: Journal Media Ltd has shareholders in common with Daft.ie publisher Distilled Media Group.
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