Dublin rents rise by 11pc in a year over 'severe shortage' of housing
A shortage of rental accommodation in the capital has led to a huge spike in rents over the last number of months, a leading economist has claimed.
Rents in parts of Dublin have increased by a staggering 11pc over the last year, while current prices are 1.5pc above previous highs in 2007.
The fastest rate of growth has occurred in west Dublin, while the highest rents are being paid in the south of the county.
Ronan Lyons, economist at Trinity College Dublin and author of the Daft Report, said that the lack of available houses reflects in the price increases.
"The severe shortage of rental accommodation has worsened in the last three months, a phenomenon reflected in rapidly rising rents in all parts of the country," Mr Lyons said.
"With the formation of a new government, a top priority must be to address the lack of housing of all kinds, including homes to rent.
"This involves understanding the costs of construction, which are out of line with average incomes," he added.
South Dublin renters pay an average of €1,663 per month, signalling a 7.4pc increase over the last year.
The figure is almost double the average rent of €998 that is paid nationwide.
Meanwhile, those looking to rent in the city centre will need to pay an average of €1,455 per month, representing a year-on-year rise of 8.3pc.
It is the 15th quarter in a row that rents have increased, while there were just 3,082 properties available to rent in May of this year.
This is compared to a peak of nearly 24,000 in mid-2009 and over 7,200 two years ago.
Rents rose nationwide by an average of 2pc in the first quarter of 2016, according to the latest quarterly Rental Report by Ireland's largest property website, Daft.ie.
This latest increase means that the national monthly rent nationwide in March was €1,006, the first time since May 2008 that the average rent has been above €1,000.
In Dublin, the annual rate of inflation in rents, in the year to March 2016, was 8.8pc and rents in the capital are now 1.3pc higher than their previous peak in early 2008.
The highest rate of inflation country-wide was in Cork city, where rents rose by 16pc in 12 months.
Rents in Limerick have risen 12.4pc in the last year, while rents in Waterford city rose by 11.1pc, and Galway rents went up by 12.7pc.
Outside the major cities, rents have risen by 8.7pc in the last 12 months.
The previous Fine Gael-Labour coalition introduced new legislation restricting the rent increases landlords can enforce to every two years.
The Residential Tenancies Board (RTB) was approved in April of this year, and has been described as the "market watchdog" with new powers aimed at cooling the rental market.