Rent accounts for up to 64% of income
by Róisín McKane
 
Affordability is a key issue in the report, which was published earlier this week, with rent levels often seen as out of tenants’ control.
Affordability is a key issue in the report, which was published earlier this week, with rent levels often seen as out of tenants’ control.

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

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