Rent pressure zones failing to protect new entrants to the market - Eoin Ó Broin TD
Sinn Féin Housing spokesperson Eoin Ó Broin TD has commented on the figures in the latest Daft.ie quarterly rental report.
The Dublin Mid-West TD stated that the 11.3% annual rise in asking rents across the State demonstrates that rent pressure zones failing to protect new entrants to the market.
The average rent across the country is now €1,334.
Deputy Ó Broin said:
“The Daft.ie Rental Price Report for quarter 3 of 2018 indicates that average asking rents have risen to new all-time high of €1,334.
"Rent Pressure Zones are clearly not working for new entrants to the rental market or people who have to move.
"According to the report, 'Asking rents in Dublin are now 10.9% higher than this time last year - while the average rental inflation rate for other cities is 15.8%'.
“In every single county in the State the 4% rent pressure zone cap is being breached on new lets.
“For example, in Galway City, a designated rent pressure zone, the average rent is now €1,226 per month. This is 16.1% higher than the same period last year, four times the 4% cap.
“Eighteen other counties are seeing double digit rent inflation, including Limerick City up a massive 20.3% to €1,151 and Waterford City up 19.7% to €955.
“The rent pressure zone legislation is failing new entrants to the rental market. Asking prices for new lets are very clearly circumventing the 4% cap and this is adding to the housing affordability crisis.
“The time for a measured response to this crisis has long passed. We need to see an immediate three year rent freeze introduced and tax relief for tenants.
“The Residential Tenancies Board needs additional power and resources to investigate rent hikes.
“This must be done in tandem with the roll out of an affordable rental scheme.
“I said when the Q1 results for 2018 were published that the government must make a strong intervention to tackle rising rents.
"Budget 2019 has come and gone an instead of implementing a rent freeze and granting tax relief for tenants the government instead granted tax relief to landlords.
“Tenants and enforcing tenant rights remain bottom of the pile for this government.”