RENTAL prices in Limerick City jumped by a massive 19 per cent between December 2023 and December 2024, the largest increase in the country by a significant margin.
Rental increases reported in the county in the same period stood at 12.3 per cent, the second largest increase nationwide.
That’s according to the latest Irish Rental Report from property website Daft.ie.
In comparison, rents in Galway city rose by 9.9 per cent and in Cork City by 10 per cent.
The average house rental price in Limerick City was €2,271 per month, the Daft report reveals, while that figure was €1,639 in the county. The average monthly rent nationally is €1, 956.
On Monday, when the report was published, there were 42 houses in total to rent in Limerick city and county, according to the Daft.ie website.
There were just 2,300 homes available to rent in the whole country, 1,200 of those in Dublin.
In February, the government said it is examining a recommendation in the Housing Commission’s report which backed the introduction of a system called “reference rents”.
The system could replace the rent pressure zones (RPZ), designated areas where rent increases are capped, which are located in parts of the country where rents are highest and rising and in areas where households have the greatest difficulty securing affordable accommodation.
The lifetime of the existing rent pressure zones is due to expire this year.
The alternative ‘reference rents’ would mean limits regarding how much a landlord could charge relative to factors such as location and size of property.
It is understood these reference rents could be one of a series of alternatives which will be brought to ministers in an options paper.
But the government has not ruled out an extension of the RPZ, amid concerns that ending them would prompt instant increase of a nature that would drive many more into homelessness.
Commenting on the Rental Price Report for 2024, IPAV, the Institute of Professional Auctioneers and Valuers, said the rent pressure zone legislation, introduced in 2016, was a control mechanism to give policymakers the breathing space to play catch up on housing supply following the financial crash but “failed spectacularly because the opportunity was not used to best effect by knocking down barriers to building homes”.
Pat Davitt, IPAV’s chief executive, said in a market economy policy makers “need to use the privilege of RPZ controls to stimulate supply and get back to what could be considered normality”.
He said reports from 15 years ago show rents dropped by an average of 17 per cent in one 12-month period, with an average national rent of €800, because of a record number of available properties.
“The problem now is we’re experiencing the very opposite and deep downside of RPZ legislation, a phenomenon the consequences of which are well documented academically. And as if to add insult to injury, Ireland chose a very restrictive form of rent controls,” he argued.
Mr Davitt said this has now resulted in investment in home building, apart from public funding, virtually grounding to a halt.
He said recent statements by the government promising to review RPZ policy were to be welcomed, but approach needs to be measured with regard to existing tenants.
“We acknowledge that such controls would need to be eased rather than have any cliff edge change that would adversely impact renters.
“But, policy makers must not lose sight of the main picture, ramping up housing supply,” Mr Davitt warned.
