Rent increases are unsustainable, says Housing Minister
Eoghan Murphy has spoken out about rising rents in Dublin and across Ireland.
The average national rent is 1,202 euro per month, 21% higher than the peak in 2007, according to the latest Rent Index from the Residential Tenancies Board (RTB).
The average monthly rent between April and June of this year rose by 79 euro compared to 1,123 euro during the same period last year.
On a quarter-on-quarter basis, rents grew nationally by 3% in the second quarter of 2019.
The average monthly rent in Dublin is 32% higher than the 2007 peak where where the standardised average rent is now 1,713 euro per month, up from 1,599 euro in the same quarter the previous year.
In our key employment areas, but particularly in Dublin, rents have reached unsustainable levels Housing Minister Eoghan Murphy
Housing Minister Eoghan Murphy said the ongoing rent increases are not sustainable and that new properties coming to the market are contributing to rent inflation.
He said: “In our key employment areas, but particularly in Dublin, rents have reached unsustainable levels. This is precisely why the Government and Oireachtas moved to strengthen rent controls and renter protections in June of this year.
“We do need new rental properties and I welcome the more than 3,440 new tenancies created since the start of the year. This is an important turnaround on what was happening in 2018 when landlords were exiting the market. While it may be pushing rent inflation upwards, new supply will help those in housing insecurity.”
Outside of Dublin, the standardised average rent is considerably less, standing at 903 euro.
The report found differences in average rents across the country ranging from 2,328 euro per month in Stillorgan, Co Dublin, to 489 euro in Lifford-Stranorlar, Co Donegal.
Average rent exceeds (or equals) 1,000 euro per month in seven counties – Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow.
Limerick falls just under this 1,000 euro threshold with a standardised average rent of 991 euro.
The report authors said the high rental levels in these areas relative to other counties “reflects the concentration of demand close to the country’s largest employment hubs.”
RTB director Rosalind Carroll said while the pace of rental growth has slowed since the last quarterly report, the continued growth levels over consecutive quarters is “not sustainable”.
“There has been significant legislative change implemented in the last four months and since the 1st July the RTB has increased powers to investigate and sanction non-compliance with Rent Pressure Zone measures, in particular where there is knowing non-compliance. It will take time to see the impact of these changes. Our first investigations under these new powers have now been officially commenced,” said Ms Carroll.
First introduced in December 2016, rent-pressure zones are designated areas where rents cannot be increased by more than 4% per annum. This applies to new and existing tenancies.