The average cost of rent nationwide rose more than 11% in early 2021

Updated Thursday 10:08 AM

The latest Daft.ie rental report showed that the cost of rent nationwide continued to rise in the first quarter of 2022, with average rents increasing by more than 11% compared to early 2021.

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

It continues the decline in available rental properties seen in recent months, with the number of available homes falling steadily since early 2021 when there were 3,600 properties available for rent.

This drop in availability is most pronounced in Dublin, where there was an 81% drop in rental properties compared to early 2021, with only 462 homes listed on 1 May.

Outside the capital, there was a 66% drop in the number of rental properties available, with only 389 properties listed on 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, average rent has also increased by 11.7% since the first three months of 2021, with rents now costing an average of €1,567 per month nationwide.

According to the report, this is the highest year-over-year increase in rents since late 2016.

The average rent in Dublin is now €2,202 per month, which is a 10.6% increase over the same period in 2021.

Other cities are also seeing sharp increases, with Cork rents up 10.2% year over year, Galway rents up 13.8%, Limerick rents up 15.5%, and Waterford rents up 16.2%.

The Leitrim area saw the highest overall increase with average rents up 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 the county South Dublin, averaging €2314 per month.

Source: Daft.ie

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

These increases can be seen more with renters based in Dublin than with renters in other parts of the country.

Commenting on the report, Lyons said that there is a high demand for rental housing in Ireland while there is a short supply of housing to meet this demand.

“While strong housing demand reflects underlying economic health, it becomes a challenge when there is not enough supply to meet it,” Lyons said.

“In the case of Ireland, the economy has been short of new rental housing for more than a decade. As a result, market rents have doubled and, as shown in this latest report, home rentals are becoming incredibly scarce.”

Lyons adds that policymakers should allow the construction of conditions for “tens of thousands” of new rents – both market and social – in the coming years.

reaction

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

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

“We need a rent-raising ban on all existing and new rents, and we need the government to put money back into tenants’ pockets with a month’s rent refundable tax credit.”

He called for the provision of additional rental housing at reasonable cost on a large scale, saying that at least 4,000 units are needed annually to meet the demand.

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

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

They called for immediate action to “reduce the burden on tenants,” but said the government’s 10-year housing scheme could bring relief in the long run.

The speaker called for more immediate action to be taken regarding the inclusion of the right to housing in the constitution, calling on him to encourage the Housing Committee to start its work.

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

Note: Journal Media Ltd has joint shareholders with the Distilled Media Group, publisher Daft.ie.

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