Rising rents in Cork described as ‘completely unsustainable’ and ‘very concerning’

A new report stating that average market rents in Cork city have risen by 7.4% in the last year while rents in the county were on average 8.8% higher has been described as "very concerning". 

According to the Daft.ie Rental Report Q2 2023, the average rent in the city is now €1,793 while in the county the average listed rent now stands at €1,410.

Nationwide, market rents in the second quarter of 2023 rose by an average of 2.4% compared to the first three months of the year, the report states.

Compared to a year ago, rents in the open-market are now 10.7% higher, with the average market rent nationwide in the second quarter just under €1,800 per month.

This compares to €1,387 in the first quarter of 2020 and a low of just €765 per month seen in late 2011.

There was a noticeable difference between trends in Dublin and elsewhere in the second quarter.

In the capital, market rents rose by just 0.3% quarter-on-quarter – the second quarter in a row of muted increases.

However, outside Dublin, the average increase between March and June was 4.3%, the second largest quarterly increase recorded outside the capital since the start of the Daft report in 2006.

Having fallen in the first quarter, market rents rose in each of the other main cities – Cork, Limerick, Galway and Waterford.

Speaking to The Echo, Cork Simon campaigns and communications manager, Paul Sheehan, described rising rents in Cork as “very concerning”, adding that the report lays bare that the private rented market in Ireland is “not fit for purpose”.

“I think what’s really stark is when you look at the national figure, that rents have more than doubled – much more than doubled – in the 12 years since 2011.

“That gives you a sense of the state of the private rented market and how much it is beyond the reach of people on low incomes, people working and people stuck in emergency accommodation,” he continued.

Mr Sheehan said Cork Simon has seen a “slow but steady increase” in the numbers of new presentations sleeping rough and staying in the charity’s emergency accommodation over the last 12 months.

“As we head into the winter, we would be concerned that that would reach crisis levels,” he added.

The Daft report also highlights a continued shortage of supply in the market, with just 135 homes available to rent in Munster on August 1.

Speaking on the matter of housing supply, Mr Sheehan said the targets under 'Housing for All' - the Government’s housing plan to 2030 - are simply not sufficient to meet the demand.

“The targets don’t go anywhere near meeting what we’re seeing on the ground in terms of the level of demand there is for housing, of the level of demand there is for emergency accommodation and those targets need to be reassessed and as a matter of urgency.

“As we head into the winter, our concern would be that there isn’t enough emergency accommodation and that needs to be looked at,” he said.

Meanwhile, Labour Local Area Rep Peter Horgan described rent hikes in Cork as “completely unsustainable”.

“Wages aren’t increasing in line with those rents. 

“What we do need to see is the Government taking on board Labour’s Renters’ Rights Bill because renters rights in Ireland are very, very lax.

“In terms of specifics, what we would like to see in the Labour Party is the State designated a rent pressure zone.

“We also need to see a register of rental properties established but that other tenants can see exactly what rent was paid in the past,” he continued.

Mr Horgan acknowledged that the eviction ban previously in place was “not a silver bullet” but called for it to be reintroduced while greater supply comes on stream and greater protections for renters are explored.