Houses for rent in Dublin: The average cost of renting a home is at the highest level on record and is increasing rapidly, faster than at any point since Daft.ie started tracking figures in 2002, a report found.
According to their website’s quarterly report, the rent went up 13.5% in the 12 months to the end of December, taking the average monthly rent across the State to €1,111.
The annual rate of rent inflation in Dublin is 14.5%. This is the second-highest rate of increase on record since 2002.
Not only that but the cost of renting in Dublin is 13.7% higher than it was in early 2008, so the prices are only set to keep going up as the time goes on. On average this equates to almost €200 a month more, which is an awful lot when people have bills and shopping to pay for on top. Anyone looking to rent in the centre of Dublin can expect to pay €1,655, an increase of 15.5 per cent year-on-year.
Houses for rent in Dublin: Supply shortages
In the City of Cork, the cost of rent has risen by 12% and 10% in Galway. All across Ireland, it seems that the price of renting is heightening; a worrying situation. The cost of renting in Limerick was 12.5% higher while in Waterford rents climbed by 10.7%, the same rate of increase recorded outside major urban centres.
Supply shortages are pushing the prices higher and there were fewer than 4,000 properties available to rent on February 1st. This means that it is only partially up on last year but just a quarter of the available properties five years ago.
Ronan Lyons, economist and report author, said: “The latest figures from the rental market remain very concerning.”
He also says that many policies introduced by the Government to control rental inflation may help sitting tenants but fails to address the underlying issue of a lack of supply.
“Indeed, they may hinder supply, by encouraging the exit of existing landlords who had not substantially increased rents in recent years,” he continued.
He highlighted the need for the cost of construction to be seen to and believes that this is the best way of handling supply problems.
Houses for rent in Dublin: A worrying situation
The spokeswoman from the Simon Community, Niamh Randall, described the new figures as “extremely worrying” and said, “spiralling rents and dwindling supply” were contributing to the problem of homelessness.
She said: “Keeping people in the homes that they already have is key to stopping the flow of people into homelessness.”
Chairman of the Irish Property Owners’ Association, Stephen Faughnan, said the report made for “worrying reading for the Government and their much lauded Housing Action Plan”.
He continued that with a “dwindling supply of accommodation and homelessness increasing, what is the Government actually doing other than producing fancy plans which may look good on paper but which realistically, will not solve the problems for the current generation of renters?”
Interesting, but what does the future hold for houses for rent in Dublin?
Written by Gemma Smith