According to the most recent Irish rental price report, daft.ie the average rental prices have reached an all-time high in Ireland for the tenth quarter. They also rose for the 25th quarter. The average rent in Ireland is EUR1,334 per month. This figure is 30% higher than the 2008 peak. However, the report shows that Dublin rents are increasing by 10.9% each year.
Dublin is one of the most expensive places to rent in the nation. Rent in South County Dublin averages EUR2,156 per months, South Dublin City is EUR2,094 per mois, Central Dublin EUR2,016 per mo, and North Dublin City EUR1,847 per mo. Average rents outside Dublin for houses are EUR695, while apartments go for EUR660.
1. Insufficient supply
Stop building homes, and you will eventually run out. We are building houses at 1970s levels for a population that is 55 percent higher than it was during that decade. Although there are plenty of ghost towns, they were constructed where they weren’t needed. Ghost estates in urban Dublin were never a major problem. Co Cork, on the other hand, still has 130 houses and Co Donegal has 64. No houses are a sign that there is nowhere to buy or rent.
2. End of the living over-the-shop plan
This was an extraordinarily generous program that could have provided more rentals where they were needed and revived city centres and towns. Ireland’s streets are filled with old, empty upper floors. The scheme provided tax relief of 100 percent for conversions of spaces into apartments over shops. Unfortunately, the take-up was low. Onerous regulations were cited by the owners of buildings, and there was insufficient street coverage.
3. Tax treatment for private landlords
Without landlords, there are no rental property. More than 70% of private landlords with mortgages state that rents don’t cover repayments. The private rental sector received 75 percent to 100% mortgage-interest relief in 2009. Commercial rental gets 100 % relief. New measures restore the 100 percent relief, but only for landlords renting out tenants to tenants who are receiving State support.
4. Encouragement to make your home uninhabitable
Commercial rates are applicable to commercially occupied properties. 50% of commercial rates are applicable to an unoccupied, habitable property. Unoccupied properties are not subject to rates. This could encourage developers to remove toilets, lifts and stairs to make sure they don’t have a tax liability. While the Government promises to change this, it’s surprising that it has been going for so many years.
5. Ending the construction and use of social housing
Everyone blames last government for ending the social-housing industry and forcing local authorities rent from private landlords. However, the current government hasn’t done much in reverse. Only 35,000 social-housing units will be built, the remaining 100,000 will be leased or rent. People with low fixed incomes are not eligible to work in the private sector.
6. Too many small apartments
Dublin City Council modified its development plan in December 2007 and increased the minimum size for one-bedroom apartments from 45sqm to 55sqm. There are already a lot of tiny one-bed apartments. Many were built between 1999 & 2004. A lot of small apartments can make it difficult to find decent apartments.
7. Let the sector fall apart
A third-year program was implemented to inspect Dublin flats. It failed to find any apartments that met minimum standards. There were problems with fire safety and rats infesting the flats. It is not necessary for old flats to be larger than new apartments. The average size of flats that were inspected was 55sq m. These flats will need to be removed if they are deteriorating too much.
8. Bedsits are banned
Bedsit is not a descriptor for low-quality accommodation. Flats that don’t have a bathroom were exempted by the 2013 ban. The ban on these units is a good idea in the long-term, but it has led to a reduction of low-cost accommodation. An alternative to insisting that the units be relet when the tenant leaves, or insisting that the tenant upgrade the unit or end the tenancy, is to ban them from being relet.
9. Flying political kites
While the government has finally revealed a plan to deal with spiralling rents but landlords are still afraid by the long public toing-and-froing, This fear likely prompted landlords to increase their rents in recent weeks. If politicians could come to an agreement behind closed door and stick to it, both tenants and landlords would be in the best position.
10. Construction moves slowly
It has taken a long time to reshape the construction industry. Budget announcement that 20,000 homes would soon be built on National Asset Management Agency-controlled sites by 2020 should help speed up the process. Also, the announcement that 90% will be built in Dublin should reduce the demand on the rental sector. More homes are needed much quicker. The use of traditional construction methods is a problem. It would be possible to speed up delivery by using modular, factory-built homes, which are assembled on-site.
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