Cork renters at ‘breaking point’ as rents grow by over 7%

THRESHOLD has warned that renters are at “breaking point”, as latest figures show average rents across Cork City and county are growing by over 7% year on year.

The Residential Tenancies Board (RTB) has published its rent index for the first quarter of 2022, which shows that the average rent for new tenancies in Cork City during that time was €1,453 per month.

The average rent for new tenancies in Co Cork also passed the €1,000 mark, at €1,094 per month.

Both Co Cork and Cork City experienced similar growth rates of 7.7% and 7.6% per annum, respectively.

Nationally, the average rent for a new tenancy stands at €1,460 — an increase of €123 compared to the previous year, or 9.2%.

The number of new tenancies across the country is on the decline. The number of newly registered tenancies has declined, on a year-on-year basis, by 32% in the first quarter of 2022, dropping to 10,414 new tenancies, from 15,291 in the same quarter last year.

New tenancies in Cork are down 9.3% in the last quarter, and have dropped 35.1% since the same time last year.

Niall Byrne, director of the Residential Tenancies Board (RTB), said the rise in rent prices and fall in number of tenancies are likely still a result of the pandemic, constraints in supply, and tenants staying longer in their existing tenancies.

National housing charity Threshold warned that renters are now at “breaking point” with the pressure of increasing rental inflation.

Threshold policy officer Ann-Marie O’Reilly said the pressures being felt by renters will only be fully alleviated by increased supply, but “there are measures that the Government can take in the short term to reduce the burden for tenants.

“The recent increase in the Housing Assistance Payment (HAP) limits to 35% are a step in the right direction and the Government has an opportunity in the upcoming budget to intervene, in a targeted manner, in the sector to provide breathing space for people. Budget 2023 must be a cost-of-living budget and a renter’s budget” she said.

Ms O’Reilly said it is “crucial” the RTB closely monitor rent increases and take action on breaches, and strongly encouraged anyone who has received a rent increase to contact Threshold’s advisers to evaluate whether it is valid.

The RTB is reminding landlords that as of April, they are required to register tenancies on a yearly basis.

It has acknowledged difficulties with its online registration system and has reassured customers that action is under way to improve the situation.

A person who does not comply with their responsibility to register their tenancy/tenancies faces a criminal conviction, and a fine of up to €4,000 and/or six months imprisonment.

The RTB has also highlighted that changes to rental legislation, which took effect on July 6, have impacted how a landlord can end a tenancy.

• To find out what these changes mean for landlords and tenants, visit the RTB’s website at https://www.rtb.ie/