Struggling renters are being left financially crippled by high housing costs, while affordability remains a significant issue, according to new research by the Residential Tenancy Board (RTB).
It says tenants pay 36% of their net income on rent, on average. Some 12% of renters are paying more than 50% of their pay to keep a roof over their head and, starkly, some renters in Dublin have to pay up to 64% of their income on rent.
Meanwhile, 20% of respondents said they were renting because they couldn’t get a mortgage, while a further 15% indicated that they were renting while saving a deposit for their own home.
Affordability is a key issue in the report, which was published earlier this week, with rent levels often seen as out of tenants’ control.
Previously, landlords had been able to increase rent by 4% a year in designated ‘rent pressure zones’ (RPZs). But last Friday (9th July), President Michael D Higgins signed much-welcomed legislation that means rent in RPZs can only be increased in line with inflation.
There were concerns that landlords would impose rent increases of up to 8% once a temporary Covid-related rent freeze and ban on evictions came to an end. The new law means this can’t happen.
The RTB says it is establishing a new tool to assist with the lawful setting of rents in pressure areas.
Its report brings together the findings of several surveys including 1,038 face-to-face interviews with tenants and 500 telephone surveys with landlords.
Get more information on the RTB HERE.
Get more information on the survey HERE.