Rents nationwide continue to surge, hit another record high

There was a rise of 10.4pc in 2017 compared with the previous year, according to Daft.ie.

The average monthly rent nationwide during the final quarter of 2017 was €1,227, the seventh quarter in a row that a new all-time high has been set.

Rents in the capital are now almost €380 a month higher than the previous peak in 2008.

Dublin rents jumped by almost 11pc last year, with the average monthly cost now €1,822. This means they have now risen by 81pc from their lowest point, according to the Daft.ie rental report. They are above their highest point during the boom. The difference in cost over a year is now €4,500 compared with 2016.

However, the annual rate of inflation represents a slowdown from the rate recorded in 2016 of 13.5pc, which was the largest annual increase on record.

In Galway and Waterford cities, rents rose by a little over 12pc last year. The average cost in Galway is €1,096, while in Waterford it is €835.

Limerick city saw rents rise by 14.8pc, to just over €1,000.

Shortage

In Cork, the increase in rents was 7.7pc, to take the average to €1,180, while outside the five main cities, rents rose by almost 10pc, for an average rent of €890.

There were 3,143 properties available to rent nationwide on February 1 last. This is the lowest number recorded for this time of year since the series started in 2006, and the figure marks a 15pc decrease on the same date a year previously.

In Dublin, there were fewer than 1,350 homes available to rent, compared with almost 6,700 on the same date in 2009.

Author of the report and economists at Trinity College Dublin Ronan Lyons said last year marked the fourth consecutive year of double-digit gains in rents nationwide.

"The underlying pressure for rising rents remains due to a chronic shortage of available rental accommodation, at a time of strong demand," said Prof Lyons. He said that in some segments in Dublin rents had doubled since 2010.

Rents have been rising in the capital twice as long as they fell - and indeed twice as long as the last market upswing.

The economist said at least 40,000 new homes a year were needed to meet underlying demand. But less than 20,000 homes were built in 2017.

This means it remains the priority for policymakers to bring construction costs down in line with affordable levels.

The Simon Communities in Ireland said the figures showed that the private rental market remains unable to cope with demand.

The organisation said that the introduction of rent pressure zones in December 2016 did not go far enough and should be urgently reviewed.

The Simon Communities also expressed concern about the rise of "renovictions" and evictions for sale under Section 34 of the Residential Tenancies Act.

Spokesperson for Simon Communities Niamh Randall said rent pressure zones and other measures won't work without monitoring and enforcement by the Residential Tenancies Board.

Tenants cannot be expected to police this private market, she said.

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