THE AVERAGE COST of renting a home in Ireland in the first three months of this year was at an all time high of €1,366 – a rise of 8% on the same time last year.
In Dublin, the average cost has risen above €2,000 – with rent increasing in the capital for the 31st consecutive quarter in a row.
The latest quarterly report from Daft.ie has also highlighted that there were just 2,700 homes available to rent nationwide on 1 May which is the lowest recorded since the first time these figures were compiled in 2006.
In the report, Trinity College economist Ronan Lyons said that analysis of the figures shows that the “basic laws of economics” are applying to Dublin’s rental market.
“They also suggest that the level of supply needed for rents to not change is about 13,000 per quarter, or 1,000 per week. Currently, the Dublin market is getting half that – about 500 per week,” he said.
To close that gap, Dublin needs to build tens of thousands more rental homes.
Across the board, rents are climbing with the cost in other cities rising at a higher rate than in Dublin.
While rent in Dublin rose by 6.8% compared to the same time last year, there were double-digit increases in Cork, Galway, Limerick and Waterford.
Average rents, and year-on-year change, Q1 2019
The average rent across the country is now €337 higher per month than the previous peak in 2008. Compared to when rents reached their lowest level in late 2011, the average rent is now almost €625 higher.
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Commenting on the report, Lyons added: “The rental market remains plagued by weak supply at a time of strong demand. While the total number of rental homes on the market did improve slightly earlier in 2019, the figures for May have undone all that progress.
Much of the commentary around new supply for the market is unhelpful, particularly talk of so-called ‘cuckoo funds’ – what in other countries are termed landlords.
Lyons added it must be a focus of policymakers to boost rental supply.
Sinn Féin housing spokesperson Eoin Ó Broin has said that the report made “for grim reading” and that there was a need for “urgent action”.
“[This] demonstrates the need for an immediate rent freeze for existing and new tenancies combined with a refundable renters tax credit worth a month’s rent.”
While the Minister lauds vulture fund investment in buying up blocks of apartments or applying to build so-called shared accommodation, none of this will assist in addressing the rental crisis if the accommodation is not genuinely affordable. The time for half measures is over.
Paul Sheehan, spokesperson for the Simon Communities, said that “people’s lives are being immensely affected by this housing crisis every day”.
“We believe further strengthening of tenants’ rights is necessary.
In particular, addressing loopholes in the existing bill around tenants’ security of tenure, such as the removal of no reason evictions at the end of every six-year cycle, could potentially make a huge difference to those who are affected by the lack of affordable housing in the private rental market, and help take pressure off over-burdened emergency accommodation.
“Ultimately, this crisis will be solved by the provision of social and affordable social housing,” Sheehan added.
Note: Journal Media Ltd has shareholders in common with Daft.ie publisher Distilled Media Group.
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