Thursday 23 November 2017

Tenants hit with biggest rent increase since 2007

'The average rent in Dublin is now €1,409, a rise of close to 9pc in the past year'
'The average rent in Dublin is now €1,409, a rise of close to 9pc in the past year'

Rental prices have shot up by the biggest ever rise since before the recession after the Government moved to control the market.

Experts had warned that plans to introduce a rent freeze would immediately encourage landlords to push up prices ahead of new measures.

Now new figures show that rents experienced their strongest increase since 2007 in the three months to September.

The latest Daft.ie survey shows rents nationwide jumped by an average of 3.2pc in the July to September period.


The national average rent between July and September was €964, compared to €882 a year previously.

The average rent in Dublin is now €1,409, a rise of close to 9pc in the past year.

Daft.ie economist Ronan Lyons, a lecturer in Trinity College Dublin, said the sharp rises were a reaction by landlords to the Government discussions on limiting rises.

Last week, Minister for Finance Michael Noonan and Minister for the Environment Alan Kelly said tenants will not face rent increases until 2017 under new rent controls.

They unveiled a housing package after months of discussion - effectively warning the market to expect rent freeze measures.

"The latest Daft.ie rental report suggests that the market reacted to talk of rental controls, with, for example, rents rising by 7pc in Cork in three months and by 6pc in Galway," Mr Lyons said.

"This is by far the largest three-month increases seen in a series that extends back ten years."

However, the survey shows supply in the market is at lowest level since records began.

There were just over 4,000 properties available to rent nationwide at the start of this month, Daft.ie said.

Back in early 2007, just before the housing market and financial sector went into a tailspin, the figure was 4,300.

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