Landlords under fire over spiralling rents
A suspected widespread flouting of the Rent Pressure Zone laws and failure to register tenancies by Galway landlords has attracted the attention of the Residential Tenancies Board (RTB).
The regulator is ordering its compliance officers to target landlords here after eight consecutive quarters of high growth in new rentals.
In Rent Pressure Zones (RPZs), landlords can increase rent by no more than 2% per year or the rate of inflation (HICP), whichever is lower. This applies to both new and existing tenancies, unless an exemption is in place. An exemption applies if a property has not been rented for two years prior to the start of a tenancy, if a property is a protected structure and has not been rented for a year, or if it has undergone a 'substantial change in the nature of the accommodation'.
There are three RPZs in Galway city since January 2017 – Galway City Central, Galway City East and West. In July 2019 two were added: Athenry-Oranmore Local Electoral Area (LEA) and Gort-Kinvara LEA. Last September the entire county came under the designation.
The whole regime of RPZs is due to be reviewed this December.
The RTB director’s latest quarterly update found that the average rent for new tenancies across the country rose by 5.5% over the last year, standing at €1,680 per month. This marks a moderation in rental growth, down from 9.1% in 2023. Existing tenancies rose by 4.6% to €1,440, down from a 5.9% in 2023.
In Galway there have been eight consecutive quarters of high growth in new tenancy rent prices. The average rent for Galway City was €1,730.
Get the full story in this week’s Connacht Tribune, on sale in shops now, or you can download the digital edition from www.connachttribune.ie. You can also download our Connacht Tribune App from Apple’s App Store or get the Android Version from Google Play.