Tenants faced with 'huge' housing disadvantage - Simon Communities react to Daft.ie report

The latest Daft.ie report showed that rents rose nationwide by an average of 9.8% during the year, with particularly high increases in urban areas, however, availability of affordable housing in the private sector remains low nationwide.

Rents nationwide rose by 1% in the final quarter of 2018, the 26th consecutive quarter of rising rents.

Rents in Dublin are 8.8% higher than a year ago - while the average inflation rate for the four other cities is 13%. The inflation rate elsewhere in the country is 10.4%

There were 11% more properties available to rent nationwide on January 1st than the same date a year previously, the first time since 2010 that availability was better at the start of the year.

The average market rent nationwide has risen by 81% since bottoming out in late 2011 and, having exceeded its 2008 peak in 2016, is now 30.8% above the previous high. In Dublin, rents are now an average of 37% above their previous peak while in Cork and Galway cities, rents are 30% and 47% above levels recorded a little over a decade ago. Outside the cities, the average rent is 22% above its previous peak.

The Simon Communities of Ireland have said that the rental report shows that tenants nationwide are faced with a “huge disadvantage” in terms of housing.

The homelessness and housing organisation said that while it is encouraging that the number of properties available to rent nationally showed rare signs of increase, availability of affordable housing in the private sector remains far too low nationwide.

Paul Sheehan, Spokesperson for the Simon Communities, said that measures are needed urgently to enhance the security of tenure in the private rental market.

“As this reports shows, despite the supply of private rented properties improving, rent prices continue to increase, meaning that the almost half-million renters across Ireland face a huge disadvantage in terms of their housing.

Nearly 10,000 men, women and children remain stuck in emergency accommodation. Many have come from the private rental sector, where they were forced to give up the homes that they already had due to spiralling rents.

"Now their only option is to remain stuck in emergency accommodation as housing is expensive beyond reach and supply, while increasing, remains far too low.

"For that reason, enhancing security of tenure has to be an urgent priority so that people already housed can keep a roof over their heads and have greater certainty in their daily lives. People trapped in emergency accommodation need secure and affordable homes, with support where needed.

Main points from the report:

  • Rents Rise Nationally 9.8%
  • Rents rise 1.0% in final quarter
  • Rents now 31% higher than their 2008 peak

Breakdown by area:

Dublin

Inflation at 3 year low

Rents in Dublin were 8.8% higher in the final quarter of 2018 than a year earlier - the lowest increase since 2016Q1 and the first time in 11 quarters inflation fell below 10%.

Majority of areas see rents double

Rents have risen by more than 100% since 2012 in 13 of Dublin’s 25 markets - the smallest increase remains in South County Dublin (85%).

Availability continues to improve

There were just over 1,350 properties available to rent in Dublin on February 1, up 1% year-onyear - stock in the city has now improved for seven consecutive months, albeit from a low base.

6% increase in room costs

The cost of a single or double room in Dublin was roughly 6% higher in the final quarter of 2018 than a year earlier.

Leinster

10% increase during 2018

Rents in Leinster, outside Dublin, were 9.7% higher in the nfinal quarter of 2019 than a year previously, the first time in over four years inflation was below 10%.

Up to 40% higher than Tiger peak

While rents in Meath are almost 40% higher now nthan their previous peak at the end of the Celtic Tiger, nrents in the south-east are just 15% higher.

Just 600 homes available

There were 595 properties available to rent in Leinster outside Dublin on February 1, down 2% yearon-year and the lowest figure recorded for this time of year since the start of the series in 2006.

Room costs continue to rise

The cost of a single or double room in Leinster was on average just over 6% higher in the final quarter of 2018 than a year earlier.

Munster

Double-digit inflation

Rents in Munster, outside the three cities, were an average of 11% higher in the final quarter of 2018 than a year ago.

Even greater urban gains

In Limerick and Waterford cities, rents were 16% higher than a year previously, while in Cork n city, they rose by 11%.

Stock on market stabilise

There were 670 homes available to rent in Munster on February 1, largely unchanged on the same date in 2018.

8% increase in room costs

The cost of renting a room in Munster was on average just over 8% higher in the final quarter of 2018 than a year earlier.

Connacht/Ulster

Double-digit inflation

Rents in Connacht and Ulster, excluding Galway city, were an average of 11% higher in the final quarter of 2018 than a year ago.

Even greater urban gains

In Galway city, rents were 13% higher than a year previously and are now almost 50% higher than their Celtic Tiger peak.

Availability improves into early 2019

There were 600 homes available to rent in Connacht and Ulster on February 1, up 13% on the same date a year ago - one of the first improvements in availability since 2010.

Room costs continue to rise

The cost of renting a room in Connacht and Ulster was on average just over 8% higher in the final quarter of 2018 than a year earlier.

Read the full report here.

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