Rents continue to rise

Rents continue to rise

Rental prices across the country have risen yet again with tenants now paying 7.3% more than what they were this time last year. 

The rate at which rents are rising, however, has slowed dramatically. Rents are up by only 0.1% compared to last quarter, indicating that the crisis may be about to plateau.

Experts have cautiously indicated that this could be as a result of outgoing Housing Minister Simon Coveney's introduction of Rent Pressure Zones – though they say it is still too early to tell for certain.

“This index relates to the January to March period of 2017, and therefore is the first rent index looking at the period since rent pressure zones were introduced,” said RTB director Rosalind Carroll.

“The rent index will be an important tool to monitor the impacts of the new measure. The findings for the first quarter do suggest that the rate of increase in private rents is moderating. However, the rental market is still volatile and it is too early to determine if this moderation is a trend. We would like to see similar findings over consecutive quarters in order to identify trends.” 

The figures were released today as part of the latest quarterly rent index compiled by the Residential Tenancies Boards (RTB).

It also revealed the average national rent is now €987 a month, though renters in parts of Cork, Dublin and Galway are paying above this.

But based on the data contained in the latest rent index, experts concluded that no additional parts of the country currently meet the criteria to be designated as Rent Pressure Zones.

There are currently 19 such zones in the country, including Cork City, Cobh and Ballincollig – Carrigaline.

In an effort to fine tune the initiative, Minister Coveney today launched a public consultation which will feed into a review of the pressure zone system. The RTB is encouraging landlords and tenants to make submissions on the issue. 

For more, see www.housing.gov.ie or www.rtb.ie.

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