With average rents at an all time HIGH in most parts of the country – one would wonder why landlords continue to LEAVE the sector?
The answer to this is very simple. Continual state interference in the private rental sector – punitive taxation, complex and ever changing legislation and rent control!
“Increased supply of accommodation is the only solution to the housing crisis, rent control reduces the supply of available accommodation, the evidence is clear; between 2016 and 2018 over 2000 landlords left the sector and over 12,000 rental units are no longer available. The State needs to value the service provided by Landlords, allow all legitimate expenses in the year they accrue, and simplify the legislation around the sector. Investors need confidence and stability” Stephen Faughnan, Chairman.
The RTB Rent Index has been issued today. It shows a 7% annual increase in national rents and announced two new Rent Pressure Zones; Carlow and Macroom LEA’s.
- Tenants remaining in properties for Further Part 4’s pay 21% less than new tenancies.
- The Q2 2019 RTB Rent Index shows the national standardised average rent was €1,202 per month.
- Report shows a 7% annual increase and a 3% quarter-on-quarter rise in national standardised average rent indicating a strengthening in the quarterly inflation.
- The average rent for Dublin was €1,713 representing an increase of €114 since Q2 2018.
- Carlow Local Electoral Area and Macroom Local Electoral Area became Rent Pressure Zone areas today 26th September 2019.
Outside of Dublin, the standardised average rent is considerably less, standing at €903 in Q2 2019. There are also very different rental markets across LEAs with standardised average rents ranging from €2,328 in Stillorgan, County Dublin, to €489 in Lifford-Stranorlar, County Donegal.
As of Q2 2019, there were seven counties where the standardised average rent exceeds (or equals) €1,000 per month – Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow. Limerick falls just under this €1,000 threshold with a standardised average rent of €991. The high rental levels in these areas relative to other counties reflects the concentration of demand close to the country’s largest employment hubs.
More information on the Index available here
Unless the state protects this existing supply of accommodation this trend will continue.