Dublin rents jump 10pc to €1,275-a-month
RENTS in the capital have spiralled more than 10pc, according to a new report.
The average rent for houses and apartments are about twice the cost of the rest of the country, according to the Private Residential Tenancy Board's quarterly index.
In now costs on average €1,275-a-month to rent a house in Dublin and €1,134 for an apartment.
In contrast, the corresponding figures for the rest of the country is €648 for a house and apartments cost €640.
The rent hikes come amid a severe shortage of supply in the capital, with growing competition among prospective tenants.
Rent in Dublin apartments is up 12.1pc in the last year while house rents are up 8.5pc, that compares to an increase of just 2.4pc and 3.2pc in other areas.
The combined increase in Dublin is 10.5pc.
PTRB director Anne Marie Caufield said the increases in the capital are worrying.
"The rate of rent increase is of concern in that it is impacting on affordability, especially in Dublin," she said.
"The PRTB will be submitting a strategy for the private rented sector to the Minister in the near future, which will examine measures to increase supply, improve affordability and ensure that standards are adhered to," she added.
"The private rented sector is a very important aspect of Ireland's housing policy, and has doubled in size between 2006 and 2011.
"It is also serving an important role in terms of Social Housing, with approximately 77,000 Rent Supplement tenants and 36,000 RAS (Rental Accommodation Scheme) tenants now living in the private rented sector, " Ms Caufiled said in the quarterly index.
Despite the increases in the capital, monthly rents for the whole country were almost 19pc lower than their peak in late 2007, while Dublin rents are still down 12.7pc from that peak.
The latest rent figures come as the cost of buying residential property in Dublin has also been rising.
Central Statistics Office figures show that house prices in the city and commuter areas shot up by 14.3pc in the year to the end of March.
And last month the ESRI said that 54,000 new homes are needed in the Dublin region to meet demand over the next seven years.
NAMA has said that it has funding in place to deliver 4,500 new houses and apartments in Dublin over the next 18 months in a move that may help ease the supply problems.
Speaking last week, Finance Minister Michael Noonan said the property sector was showing signs of "normalisation" following the economic crash.
Mr Noonan is expected to announce measures in the upcoming October Budget targeted at boosting the construction sector.