Now families are hit by 8pc rise in cost of renting their homes
FAMILIES renting in Dublin are being charged almost 8pc more than 12 months ago – and rent inflation is spreading across the country.
The year-on-year increase in renting costs hit 4.8pc nationally in the third quarter of this year, which is up from 4.2pc in the second quarter, a report by Daft.ie has revealed.
Rents increased in almost all cities over the past 12 months, with only Waterford showing a decrease in costs.
The inflation was blamed on a shortage of properties, with many families now struggling to find anywhere affordable to rent or buy in desirable areas.
Thousands more people risk losing their homes because costs are increasing so fast, the Focus Ireland charity warned.
A 7.6pc rise in Dublin means the average monthly rent in the capital now stands at €1,152.
Rents in Cork city are up 3.1pc on the same period in 2012 and the average monthly cost is now €831. That figure in Galway city is now €816 following a 3.6pc increase. Rents in Limerick rose 1.6pc over the past 12 months and are now averaging €662 per month.
The increases, particularly in Dublin, are being put down to a severe shortage in rental properties with fewer than 1,500 properties available to rent on November 1. This is the lowest number available since records began in 2006 according to the report's author, Daft economist Ronan Lyons.
"An acute shortage of rental accommodation has now emerged in Dublin, with fewer properties on the market now than at any point since records started in January 2006. Clearly, any NAMA supply in the capital would be a welcome addition in easing tenant concerns," he said.
"Elsewhere, markets look relatively balanced with oversupply from 2009 having corrected itself in many counties."
Rental inflation outside Dublin has risen from 0.9pc to 1.8pc in recent months. The average rent nationwide is now €824 as rise in Dublin spread to neighbouring counties.
Rents in Kildare, Meath, Wicklow and Louth rose on average 3.7pc, with the average price in Kildare now at €815 following a 4.9pc increase. Carlow was the only county in Leinster not to show any increase from 12 months ago.
Focus Ireland said it was concerned about the "highly worrying" rent increases in the capital, and elsewhere and called on Government to invest €400m to help deliver 3,000 homes and create up to 3,200 construction and supply jobs.
Mr Lyons said the increases suggested the market was working through the backlog of over supply during the bubble years, but said there was a clear shortage of housing in the capital.
"If we want the cost of housing to go down, we need to build more," he told the Irish Independent.