Rent report shows ‘f lagrant breaches’ of rules

THE Government has been told that a report showing that rents in existing tenancies across the country grew by 5.2% is evidence of ‘flagrant breaches’ of rules designed to cap rates in certain urban areas.

The Q3 2023 rent index report from the Residential Tenancies Board (RTB) showed that the average rent for new tenancies was €1,598 – 17.7% higher than the €1,357 average rent for existing tenancies.

It also found that there was an 11% year-on-year increase in rates for new tenancies and a 5.2% increase for rents in existing tenancies.

In certain rent pressure zones (RPZs), rents cannot be increased by more than 2% per year – or by the rate of inflation, whichever is lower.

During Leaders’ Questions yesterday, Sinn Féin finance spokesman Pearse Doherty said the RTB report showed tenants are being ‘fleeced’ in every county.

Mr Doherty said rents have increased by 30% over the life of the current Government and the average tenant now pays €4,500 more per year than they did four years ago.

He said the report shows rents are ‘continuing to spiral out of control’.

Mr Doherty said Sinn Féin wants to ‘protect renters’ by banning increases for three years and returning a month’s rent to their pockets. He added that the party would implement policies to boost the supply of affordable and cost-rental homes.

Labour leader Ivana Bacik said there was clearly a problem with ‘flagrant breaches’ of RPZ rules, and that the report showed the Government had failed in its duty to ensure people have affordable housing.

However, Finance Minister Michael McGrath told the Dáil: ‘Fundamentally, the reason why rents are continuing to rise is because there is a mismatch between supply and demand. That is the reality.

‘We are unquestionably now making very significant progress,’ he said, adding that there was ‘real momentum’ in homebuilding across the country.