Rents rise 9% in space of a year

RENTS soared by nearly 9% to an average of €900 a month in the 12-month period to September – and auctioneers believe there are further increases to come.

The soaring rates were blamed on the Central Bank’s tough new qualifying rules for a mortgage – forcing many to stay in rented homes.

The introduction of rent control measures to halt rent hikes also saw some landlords raise rents before they came into force recently.

The new rules mean landlords will not be able to raise rents for two years and have to give 90 days’ notice when they do want to increase it.

Most people looking to buy a home will have to find a hefty 20% deposit – although first-time buyers will only need 10% of the price up to €220,000 and 20% above that.

This means a first-time buyer looking at €350,000 home would need to find €48,000 in cash for a deposit before qualifying for a mortgage.

Institute of Professional Auctioneers and Valuers chief Pat Davitt said the sharp rises were caused by ‘the Central Bank’s overzealous mortgage-lending restrictions and the delay in implementing rent-certainty measures’.

He added: ‘While the average rent in Dublin has risen by 8.7% between September 2014 and 2015, with the new rent measures it will probably rise by proportionately more in the final quarter of this year.’

Private Residential Tenancies Board director Anne Marie Caulfield said: ‘It is very important that both landlords and tenants are aware of the new tenancy legislation which has just been passed. It provides that rent may only be increased once in a 24-month period – previously 12 months. As previously, rents may not be more than the market rate.’

Private-sector rents across the whole country in the three months to September averaged €901 – up from €830 a year earlier.

However rent for an apartment in the capital went up almost €100 from an average of €1,169 to €1,265.