Northside rents continue to surge to record levels

RENTS across the Northside have surged to an average of €1,659, up more than 77 per cent from their lowest point in 2011.

Across the city, rents are now an average of 22.8 per cent, or €330 a month, above their previous peak during the boom in 2008. 

The latest Daft.ie rental report shows rents in Dublin are on average 12.3 per cent higher in the third quarter of 2017 than a year previously.

Rents have now gone up consistently over the last 21 quarters, and there’s no sign of the trend reversing any time soon.

There were fewer than 1,300 properties available to rent in Dublin on November 1 – 13.6 per cent lower than on the same date in 2016.

The 3.9 per cent increase in the third quarter of this year means that the four largest increases in rents this decade have taken place in the last six quarters.

In Dublin 1 average rents range from €1,479 for a one bed apartment to €2,206 for a three bedroom house, while in Dublin 7 the figures are €1,387 and €1,911.

Prices further away from the city centre are lower but it will still cost €1,302 to rent a one bed apartment or €1,794 for a three bed house in Dublin 9.

In Dublin 11, it’s €1,193 for a one bed apartment and €1,643 for a three bed house while in Dublin 15, the figures for the same type of properties are €1,173 and €1,617.

Rents are now significantly higher than the average cost of a mortgage. For example, according, to Daft.ie calculations a two bed house in Dublin 11 that costs €1,371 to rent could be bought with a 30 year mortgage costing just €779 a month.

Author of the Daft Report and economist at Trinity College, Ronan Lyons, said the increases are due to “an acute and worsening” shortage of accommodation.

“Four of the five largest quarterly increases in rents have now occurred since the start of 2016 and rents in 46 of the 54 markets covered in the report now exceed their Celtic Tiger highs,” he added.

“Rents in some parts of Dublin have now risen by 90 per cent from their lowest levels in 2011.

“It is now increasingly agreed that the country needs at least 40,000 or 50,000 new homes a year, to meet underlying demand.

“As Ireland catches up with its peers in terms of demographics and urbanisation, the construction effort should focus on apartments, of all types, in major urban areas.

“What is stopping that from happening is how high costs are relative to our own incomes. Caps on rent increases may help sitting tenants but are at best of no consequence in solving the underlying challenge.”

In its response to the Daft.ie figures, Focus Ireland called for urgent Government action to tackle rocketing rents.

The charity warned that, despite the Strategy for the Rental Sector published 12 months ago, Government action to address the rental crisis has had very limited impact so far.

“The DAFT report clearly show that actions the Government has taken – such as Rent Pressure Zones – have not been implemented effectively,” said Focus Ireland Advocacy Director Mike Allen.

“While the Rent Pressure Zones have helped curtail rent increases for some sitting tenants there are so many loopholes in the legislation it is still far too easy for landlords to ignore.”