West hit by strongest rent rises in 15 years
Rent prices in western and north-western counties have had the strongest rate of inflation on record since 2006 - because the majority of these regions remain outside of Rent Pressure Zones.
That’s according to research in the latest Daft.ie Rental Price Report for the final quarter of 2021, which has revealed that average rent has increased in the west and northwest by 18.9% compared to Quarter 2020.
The recent report found that the average rent in Galway City has increased by 8.8% since 2020 to €1,504.
Donegal has experienced one of the highest increases in the west, with average rents jumping by an unprecedented 24.3%. Leitrim, once the cheapest county to live in has had the highest increase in the country at 24.8%, with the average rent now costing €779.
And as these areas are not protected by RPZ (Rent Pressure Zone) legislation, landlords cannot charge more than ‘market rent’ when seeking a rent review, which must be a minimum of 24 months from the previous review notification. Galway City is a RPZ.
Threshold, the national housing charity, said that their Galway office dealt with queries from 504 households in December 2021.
Of these queries, 40% concerned tenancy terminations, with private renters facing little options of alternative accommodation when their tenancy is ended as long-term rental choices dwindle.
One in five cases concerned rent and rent increases in the same period, according to Threshold’s Western Regional Services Manager, Karina Timothy.
“The high increase in rent prices combined with the fewer choices of accommodation in the west and northwest is incredibly concerning,” she said.
“We’re experiencing far more queries with more tenants expressing concerns over the increasing costs of renting and it’s a very difficult time for those who are renting.
“Additional measures such as a Rent Register, which would allow private renters to check the previous rent on the property and when it was set, are undoubtedly necessary, as is a nationwide expansion of Rent Pressure Zones in order to tackle rising prices,” she added.
Daft.ie reported that rents have risen nationally by an average 10.3%, the highest year-on-year national rent increase since the second quarter of 2018.
This is exacerbated by long-term accommodation availability dropping significantly throughout the country, with short-term lets becoming a more frequent phenomenon.
Collectively in Connacht – along with Cavan, Donegal and Monaghan – Daft.ie reported just 188 homes available to rent on February 1; the second lowest figure since 2006.
Prior to the Covid-19 pandemic, 600 homes were recorded as available to rent, which represent a drop of almost 70%.
That’s why, Ms Timothy said, ongoing measures from the State must continue.
“We need to see further action from the government in tackling soaring rent prices, similarly to how they have acted in response to increasing energy costs and inflation,” she said.
“There won’t be any improvement without some further regulatory measures, and unfortunately – the longer that this issue remains – the more individuals and families are placed at risk of homelessness.”
Threshold’s helpline is open Monday to Friday, 9am-9pm at 1800 454454, with webchat at threshold.ie for any renter in need of advice or support.