Average cost of rent across the country up more than 11% from the start of 2021

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Updated 2 hours ago

THE COST OF RENT nationwide continued to rise in the first quarter of 2022, with average rents increasing by more than 11% compared to the start of 2021, according to the latest Daft.ie rental report.

It comes as the number of rental properties on the market has fallen to the lowest number ever recorded by Daft, with just 851 properties listed nationwide.

It continues the decline in available rental units seen in recent months, with the number of available units declining steadily since the start of 2021, when there were 3,600 rental units available.

This drop in availability is most marked in Dublin, where there has been an 81% drop in rental accommodation compared to the start of 2021, with only 462 units listed as of May 1.

Outside the capital, the number of rental units available fell by 66%, with only 389 announcements as of May 1.

The report’s author, Associate Professor Ronan Lyons of Trinity College Dublin, said the number of homes available may be underestimated as it only takes into account properties listed on Daft.ie.

With fewer properties available, the average rent has also increased by 11.7% since the first three months of 2021, with rents now averaging €1,567 per month nationwide.

According to the report, this is the largest year-over-year rent increase since the end of 2016.

The average rent in Dublin is now €2,202 per month, up 10.6% on the same period in 2021.

Other cities are also seeing strong increases, with Cork’s rents rising 10.2% year-on-year, Galway’s 13.8%, Limerick’s 15.5% and Waterford’s 16.2% .

The highest overall increase was seen in Leitrim, where average rents increased by 24.8%.

The cheapest rents in the country are in Donegal, where the average rent is €857 per month, while the most expensive rents are in South County Dublin, with an average of €2,314 per month .

Source: Daft.ie

The report also analyzed rent increases for current tenants – people who have not moved into a new home and are already renting a property – with an average increase of 3.4% each year over the past 10 years. .

These increases are perceived more by incumbent tenants in Dublin than by tenants in other parts of the country.

Commenting on the report, Lyons said there is strong demand for rental accommodation in Ireland while the supply of accommodation is insufficient to meet this demand.

“While strong housing demand reflects underlying economic health, it becomes a challenge when there is insufficient supply to meet it,” Lyons said.

“In the case of Ireland, the economy has suffered from a lack of new rental accommodation for over a decade. As a result, market rents have doubled and, as this latest report shows, rental accommodation has become incredibly scarce.

Lyons adds that policymakers need to allow “tens of thousands” of new rental housing – both market and social – to be built in the years to come.

Reaction

Reacting to the report, Sinn Féin housing spokesman Eoin Ó Broin said the government’s 2% rent cap was not working and called for a full rent freeze to be implemented.

“The government’s 2% rent cap is clearly not working,” Ó Broin said.

“We need a ban on rent increases on all existing and new rentals, and we need the government to put money back in the pockets of tenants through a refundable tax credit worth $100,000. ‘one month’s rent.’

He called for large-scale delivery of additional affordable rental housing, saying at least 4,000 units a year were needed to meet demand.

A spokesperson for Threshold, a charity which focuses on people’s housing rights, said the level of rent increases was due to an overreliance on the private sector to provide housing.

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“The rent increases reported in the Daft Q1 2022 Rent Report are the culmination of successive housing policies that have been overly reliant on the private sector to provide housing,” the spokesperson said.

They called for more immediate action to “ease the burden on tenants”, but said the government’s 10-year housing plan could provide long-term relief.

The spokesperson called for more immediate action to enshrine the right to housing in the constitution, calling it encouraging to see the Housing Commission begin its work.

The full Daft.ie report is available to read here.

Note: Journal Media Ltd has common shareholders with Daft.ie publisher Distilled Media Group.

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