MINISTER ISSUES A ‘ROBUST’ WARNING ON RENTS
Almost €260,000 refunded to tenants
UNSCRUPULOUS landlords who flout strict rules designed to stop spiralling rent rises face an ‘aggressive’ crackdown, Housing Minister Darragh O’Brien vowed yesterday.
Average rents are now €1,352 a month – up €126 from last year’s monthly average of €1,226, according to the latest Residential Tenancies Board (RTB) report.
As rents continue to soar, average mortgage rates are falling, making it thousands of euro a year cheaper to buy a home now than to rent, despite rising house prices.
Mr O’Brien said: ‘I have called upon the RTB to ensure that their full powers and resources are brought to bear in initiating and executing a robust and thorough campaign to identify non-compliance and breaches in rent pressure zones, rent increase restrictions and related procedures, including those related to rent reviews and notification of exemptions from the restrictions.
‘My officials and I intend to work intensively with the RTB to raise awareness of rent-setting responsibilities and, indeed, the sanctions that can be imposed if those responsibilities are not adhered to.’
RTB interim director Pádraig McGoldrick said: ‘While the latest rent levels will not yet have been impacted by the change in rules for rent-setting introduced in July, the level of increase in quarter two, 2021, is a source of concern and, while there may be legitimate reasons reflecting the rate of increase, it may also indicate an unacceptable level of non-compliance by landlords with rent-setting regulations restricting rent increases in rent pressure zone areas (RPZ).’
The average rent on houses is €1,347 per month, which is an increase of more than 9% year-on-year, while the average for apartments is €1,379 per month, a year-on-year hike of 5.5%.
Property prices rose 8.6% nationally in the year to July, to a national average of €310,640, the CSO data shows.
But average mortgage rates are falling, so a first-time buyer with a 20% deposit is paying just €990 a month, which is a saving of more than €360 a month on the average rent.
Dublin had the lowest rental inflation but remains the highest in the country to rent at €1,848 a month.
Where landlords circumvent the legislation concerning pressure zone rent caps, the RTB has the power to investigate and apply sanctions, with fines of up to €15,000. The RTB recently started almost 400 investigations into improper conduct and to date, almost €260,000 has been refunded to current and former tenants as a direct result of breach of rent-setting rules.