According to the Rental Report by Daft.ie released today, ‘Quantities, not prices are where the problems lie in the Irish rental market’ but the Union of Students in Ireland said the peaking rental costs in Ireland from the supply and demand ratio could push students out of the private rental sector and away from third level institutions.
According to the latest quarterly report by Daft.ie, rents rose nationwide by an average of 3.2% in the third quarter of 2015, the largest three-month increase since early 2007. Supply on the market is at its tightest on record, with just over 4,000 properties available to rent nationwide.
“This spike in rental costs could make accommodation unaffordable to students and could push them out of the private rental sector and away from third level institutions,” Kevin Donoghue, President of the Union of Students in Ireland, said. “While the two year rent freeze reform from the government will provide rent certainty for both tenants and landlords, and this scheme could benefit students because they will be less likely to move into a place and then be forced to move or fork out more rent; it is not as beneficial for students moving out of their family homes as they will still be hit with increases. It’s also unfortunate that the rent freeze has come in at a time where the cost of rental accommodation is this high – it’s the largest three-month jump in rent since 2007 at a national average of 3.2% in the third quarter of 2015.”
The national average rent between July and September was €964, compared to €882 a year previously. The largest rent hikes are in the cities outside Dublin, with rents 13.5% higher than a year ago in Cork city and just over 12% higher in Galway city.
Since 2013 there has been a shortage of available properties in Dublin, but other parts of the country are now seeing significant falls with 40% fewer homes to rent in Munster at the start of this month when compared to last year.