Rents hurtle towards 2007 levels as landlords react to new controls

Speculation over rent control over the past year has lead to the largest increase in the cost of rent in Ireland since before the recession, sending prices hurtling towards 2007 levels. 

With demand for accommodation climbing rapidly and supply dwindling, the latest figures from the Private Residential Tenancies Board show house rents  in the second three months of 2015 were 6.4 per cent higher than they were during the same period in 2014. Apartment rents rocketed by 7.6 per cent, as landlords reacted to plans to introduce a rent freeze.

According to Daft.ie, the average rent increased by an average of 3.2pc (from €882 to €964) in the July to September period alone.

Renting a home in the capital will now set you back an average of €1,409 (nine per cent more than last year), while rents in Cork are up in nine per cent in the last three months and six per cent in Galway.

Announcing Ireland’s new rent controls, Minister for Finance Michael Noonan and Minister for the Environment Alan Kelly confirmed that tenants will not face rent increases until 2017.

Under the new plans, rent reviews will only come around every 24 months and landlords will have to provide evidence that any increase is in line with the local market rate.

They will also have to notify tenants of a rent increase 90 days ahead and inform them of their rights, including how to dispute said increase.

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