Rise in rents across Limerick creating an 'unsustainable situation'
Rise in rents across Limerick creating an 'unsustainable situation'
10 May, 2017, 01:24
Rents rose by an average of 13.4% in the year to March, with the average monthly rent reaching €1,131 in the first quarter of 2017.
There were fewer than 3,100 properties available to rent nationwide on May 1, down from nearly 4,000 three months previously and in line with May 2016, the lowest on record, it said.
In Cork, the cost of rents rose by 10.4pc to €1,107. However, there are very few homes for sale, and a small number being built. This is the second lowest number on record, in a series that started in January 2006.
"The message from the rental market to policymakers is the same as it has been for over five years now: more supply is needed", Ronan Lyons, economist at the country's prestigious Trinity College Dublin. It was one of counties with the fastest rising rents, just behind Louth which saw an increase of 18.3 per cent in the past year.
The Simon Communities say the Housing Minister's "Rent Pressure Zones" - where prices rises are controlled - do little to help those trying to exit homelessness.
Rents in Dublin are now 66% higher than at their lowest point in 2011, while outside the capital they are up 41%.
"Sitting tenants now enjoy not only a discount relative to the market rent but also protection of that lower rent into the future".
Daft.ie said it is recording large increases in activity on the site with an average of over 1,000 property searches every minute.
"The more appropriate solution remains to increase supply". "This has always been the norm in the market with landlords valuing their good tenants and showing that value by not increasing to market rent", he said.
The controls affect rental properties that are being sold, discouraging new investors to purchase rent controlled properties, Mr Faughnan added. This huge discrepancy puts a huge financial strain on low income families who are in rented accommodation.
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