Sign in. It’s quick, free and it’s up to you.
An account is an optional way to support the work we do. Find out more.
MINISTER FOR HOUSING Simon Coveney has signed orders that will designate Maynooth, Co Kildare, and Cobh, Co Cork as rent pressure zones, which will limit the annual rent increases in these areas to 4%.
The expansion was announced at the launch of the Residential Tenancies Board (RTB) expanded rent index report, which showed that private sector rents across the country grew by 7.8% in the last quarter of 2016, compared to the same period last year.
Private rents in Dublin are now 8.3% above their peak level reached in 2007, while the country as a whole is 2.7% below its 2007 peak.
The standard national average rent as 2016 closed stood at €986 per month.
The pace of growth in the Dublin rent index exceeded that of house prices in the fourth quarter of 2016.
Minister Coveney said that the report “represents a major innovation”, involving collaboration between the RTB and ESRI which “will give us a significantly more detailed understanding of market behaviour in the rental sector”.
The new report now focuses on more localised geographical data for the first time by focussing on different rents in the 137 Local Electoral Areas across the country.
Coveney said that his department used the report to target the areas facing the most severe pressures from rent increases, so that they too could be designated rent pressure zones.
Any area where rents had gone up by more than 7% in four out of the previous six quarters, and where the rents were above the national average qualify to be designated rent pressure zones.
Four Dublin local authority areas, and Cork City, were chosen as areas which would limit annual rent increases in December, and a further 12 areas in Galway, Kildare, Meath and Wicklow were designated as rent pressure zones in January.
With the addition of Maynooth and Cobh local electoral areas, Coveney said that some 57% of tenancies nationally are now located in rent pressure zones.
Drogheda had also been up for rent pressure zone status, but while rents had risen by more than 7% in the previous six quarters, rents for the entire area were still not above the national average and so it did not qualify.
When questioned over the huge rents in areas of Dublin, which in some cases are double the national average, Coveney said the zones “did not solve everything”.
He said that building more houses was key to lowering rents, and that the 4% rents controls were designed to give “some certainty” to tenants living in areas of high rent.
“The practice effect of these measures,” he said, “is that more than 186,000 households who currently rent their homes in these areas now know exactly what maximum rent they will have to pay over the next three years.”
In June, six months in to the policy, it will be possible to ascertain the initiative’s effectiveness, Coveney added.
With reporting from Cormac Fitzgerald
To embed this post, copy the code below on your site
Shur maybe we should just consider the whole country to be one and quit the faffing.
@mcgoo: have to give it to Coveney. He actually gets things done.
Another report on housing and rents. Just what we needed.
@John Brennan: I can’t speak for Cobh but if you saw the state of the rental sector in Maynooth you’d see it is needed.
@rick and morto: Taking the focus off Noirin and Garda scandals with this crap.
@rick and morto:
Maynooth needs to be tripled in size at least and i predict in 30 years it will have a population of 40,000.
Covney. More bluster about nothing. His policy on rent has achieved nothing. Landlord are now only renting property on a 12 month lease. Is they increase the rent at market values and not at covney values. Time to get real man.
@Sam: Your post makes no sense Sam.
Yeah, it would be interesting to see a list of landlord TDs who are making off like bandits by coveneys refusal to properly tackle the housing crisis.
@The Risen: No, it really wouldn’t. No one cares.
@The Risen: Maybe this is one for the Journal fact checking people
Article in the Herald.ie stating that some landlords now looking for 5 months rent up front from people on the HAP scheme. Landlords will always be one step ahead of Coveney and his useless FG wasters.
@Eddie Byrne: need to build homes for people to live in not investment units for greedy landlords and vulture funds who are driving up prices and blocking people having their own homes.
@Eddie Byrne: SHAME ON FG&ESPECIALLY LABOUR FOR INTRODUCING HAP. SHAME ON FF FOR SEEMING TO THINK HAP OK TOO. HAP SHOULD ONLY BE SHORTERM EMERGENCY HOUSING. FG LABOUR & NOW FF SEEM TO THINK IT HOUSING FOR LIFE AS ANY PERSON WHO MANAGES TO FIND A LANDLORD TO TAKE IT, IS TAKING OFF THE COUNCIL WAITING LIST. THIS IS A GOV PLY TO REDUCE THE NUMBERS ON THE HUGE&COUNTING WAITING LISTS.HAP TENANTS HAVE NO SECURITY OF TENURE& CAN BE THROWN OUT ANYTIME.LANDLORDS GREED OVER TENANCY IS FG LABOUR & FF POLICY.WHERE ARE OVER 66s SUPPOSED TO LIVE AS THEY NOT ENTITLED TO HAP. WHERE ARE DISABLED CARERS & ILL PEOPLE SUPPOSED TO LIVE IN THIS PRIVATISED SOCIAL HOUSING?? WHY CANT TENANTS ESPECIALLY THE POOREST & SICKEST HAVE SECURE PROPER SOCIAL HOUSING WITH LIFELONG TENANICES LIKE GERMANY FRANCE SCANDINAVIA ETC?? WHY CANT THE EU FUND& FORCE IRISH GOVERMENT TO BUILD SOCIAL HOUSING & INTRODUCE DIRECTIVE LIKE THEY DONE FOR WATER ETC?? BONDHOLDERS WELFARE IS PRIORTY OVER THESE LOSING THEIR UNSECURE SHORTERM RA HOME
@Abcd: All tenants have the same security of tenure.
What a great leader of the blueshirts he will make. FG royalty holding down his family’s dail seat. He now will drip feed more towns that he deems “rent pressure zones” to increase his chances with the die hard blueshirt paid up members. Today Maynooth and Cobh, no matter what scandals hit Simon can always pull out a few more town where he doesn’t own property in. He also raised councillors expenses and save the meat industry from any convictions for tainting our beef supply. Leo may as well give up and Harris who is not interested in being health minister or in any way qualified, Will find comfort being Frances Fitzgerald special little friend.
Does anyone know, the 4% yearly rise, does this replace the two years rule that you cant raise rates for two years I think it is? Or do you have to wait two years and then can only increase by 4% max?
@Karen Doyle: From citizens information:
“In existing tenancies (starting before 24 December 2016) the first rent review in a Rent Pressure Zone may take place a minimum of 24 months after the previous time the rent was set. The maximum rent increase will be 4% (which amounts to 2% per year since the previous rent was set). Subsequent rent reviews may take place after a minimum period of 12 months.”
Why cobh? You can rent or buy a property there for a huge percentage less than any other town within same distance to cork city?
GOD IT WOULD BE GREAT IF THERE WERE HOUSES FOR PEOPLE TO LIVE IN NO NEED FOR RENT CONTROL
Be no harm if he put Midleton in to it average here is 1150
They really expect that to work. All a landlord has to do is not renew the lease, turf out the existing tenant and set a new lease with whatever rent suits with a new tenant. The problem is not enough supply, more needs to be done to supply more properties.
Watch as quantities of rental properties in Maynooth for sale shoot up.
Great, Drogheda getting ignored again.
have your say