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Rents in Dublin increased again but showing signs of slowing

Almost 100 new apartments built for senior citizens in Dublin have remained unoccupied because of a failure to reach agreement on rents.

Fr Scully House, comprising 99 apartments near the junction of Gardiner Street and Mountjoy Square, was built with 100pc State funding under the Capital Assistance Scheme (CAS).

The €17m complex was built following the State grant to the Catholic Housing Aid Society.

Dublin City Council is entitled to nominate social housing tenants to 75pc of the apartments but have been unable to do so because the Society is seeking rents considerably higher than average rents associated with such schemes.

The usual rents on such schemes are between €65 and €70 but the association is seeking €90 for first floor units and higher rents for upper floors.

Negotiations between the council and the association have been underway since July but no agreement has yet been achieved on rent levels.

Rocketed

A spokesperson for the association was unavailable today.

Meanwhile, rent prices for private rented accommodation in Ireland have rocketed again, but are showing some signs of a slow down for the first time in five years.

The cost of renting apartments and houses in Dublin city has increased by up to 16.6pc in the last year.

Rents are now almost 30pc above their lowest point in 2012 and less than 10pc below their 2007 peaks in the city.

But the Daft.ie report points out that there was a small easing in Dublin inflation from 15.6pc to 14.5pc in the last quarter, which had a knock on effect on rents.

In Limerick, rent rose by 6pc to €704 and it jumped by 5pc in Waterford to €628 a month.

Economist Ronan Lyons said that, from mid 2009, when rents were falling 18pc a year, each successive quarter of the year saw an increase in rents until now.

hnews@herald.ie


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