THE NUMBER OF homes available for rent across Ireland has dropped to an “all-time low” leading to further price spikes around the country, according to Daft.ie.
In its latest quarterly rental report, the property advertisement website notes that there were just 1,460 homes available to rent on 1 November. This is the lowest amount since Daft began tracking availability in January 2006.
The amount available now is almost half the previous lowest amount, which was recorded in mid-2019.
In Dublin there were only 820 properties available to rent, a fall of 51% on the same date last year and the first time, since Daft began its dataset, that the rental stock in the capital has dropped below 1,000.
This has led to rental prices in Dublin increasing 2.7% on a year-on-year basis.
The increases were even steeper across other cities with a year-on-year jump of 6.9% recorded in Cork, 8.3% in Galway, 8.9% in Limerick and 10% in Waterford.
The average rent nationally now stands at €1,516 per month. This is a spike of 6.8% and marks the 36th consecutive quarter where rents are higher than they were in the previous twelve months.
Excluding the cities, the average rent across the country stands at €1,153, an increase of 11.9% on last year. In Mayo, Roscommon and Leitrim rents rose by over 20% on a year-on-year basis.
Record levels of inflation were recorded across Connacht, Ulster and Munster. Stocks were also at a record low across all the provinces with just 236 homes available to rent in Munster, 232 in Leinster (outside Dublin) and 172 across Connacht and Ulster.
The Daft report notes that the increase in rents “reflects an on-going and unprecedented scarcity of rental homes”.
“Covid-19 temporarily reshuffled Ireland’s rental problems but the latest figures confirm those problems of shortages are getting worse over time,” Ronan Lyons, economist at Trinity College Dublin and author of the report, said.
“While some argue against the construction of large numbers of purpose built rental homes, any solution to the chronic shortage of rental homes in Ireland must include building new ones.
“In this regard, the pipeline of almost 45,000 new build-to-rent homes – while concentrated in the Dublin area – is particularly welcome.”
Lyons concluded: “More than 50,000 more rental homes have been proposed. Their construction would help improve the availability and affordability of rental homes, something for policymakers and planners to consider.”
In a statement, the Institute of Professional Auctioneers & Valuers (IPAV), said the latest report shows “a severe and diminishing lack of rental properties to meet demand”.
“While there is such a low level of stock, rents are going to remain elevated,” Pat Davitt, IPAV Chief Executive, said.
“We’ve had some expert opinion warning of the risks associated with rent controls. We believe further rent controls are not the answer but increasing the supply of homes for rental and for purchase. This is critical from a social and economic perspective.”
The full Daft.ie report can be found here.
Note: Journal Media Ltd has shareholders in common with Daft.ie publisher Distilled Media Group.