'Worrying signs' as Midwest rental prices hit record high

The average rental price in the region increased to €1,673 - up from €1,524 in the previous month - with the median price rising to €1,550, up from €1,400 in the same period

Following a second consecutive fall in the supply of housing, coupled with a "concerning" surge in rental prices, Limerick Chamber has warned that the current scenario poses a "significant threat" to the well-being of its community

Alarm bells have been raised about the "significant threat" of housing shortages following a surge in rental prices across the Midwest of Ireland.

As well as seeing a decrease in the number of available homes to rent, Limerick Chamber's latest Mid-West Monitor found that September exhibited the most expensive average and median rental prices since records began in August 2022. 

The average price increased to €1,673 - up from €1,524 in the previous month - with the median price rising to €1,550, up from €1,400 in the same period.

Limerick Chamber has warned that the current scenario poses a "significant threat" to the well-being of its community, adding that it could have severe repercussions on its members, including those already operating at full capacity such as Focus and Midwest Simon Community, as well as for companies looking to relocate to the region and the working masses.

For the whole county of Limerick, there were 49 residential homes to rent, an increase of 4 on the previous month, with average and median price of around €1,900 - an increase on the previous month.

Of the 49 residential homes to rent in the whole county of Limerick in May, 65% of these were located in the city and suburbs while 35% were located in the county.

In addition, the number of residential homes to rent in Clare decreased by 12 in September compared to August, decreasing to 27 homes available to rent. The average and median price were €1,543 and €1,400 respectively – both increasing from the previous month.

Similarly, only 25 residential homes were available to rent in Tipperary in September – a decrease of 10 homes since August. The average price of these homes was €1,284 and the median price was €1,250, representing a slight increase in prices from the previous month.

Lack of 'adequate' housing

“September experienced the most expensive average and median rental prices since our records began and overall, the price trend has been upward over the last year, which is a very worrying sign for renters," said Seán Golden, Chief Economist and Director of Policy at Limerick Chamber.

"The lack of adequate rental availability has put upward pressure on rental price and in turn causes upward pressure on wage demands. Average rental prices have increased since last month for the 3 counties in the Mid-West, leading to an average rent of €1,673 in the Mid-West." 

"Comparing this to last year would mean that new renters are paying an additional €4,100 per year."

With Budget 2024 just around the corner, increased pressure is on the Government to address Ireland's housing crisis. 

On Monday, the Irish Examiner reported that landlords will get relief in the form of a tax credit. “It will be no more than what renters get in their tax credit which will also be increased,” according to one source.

Housing Minister Darragh O'Brien has been strongly pushing for a doubling of the €500 credit for renters. While Mr O'Brien may not get the full €1,000 credit across the line, sources have stressed that the support must be increased to at least €760 to reflect current average rents.

Speaking on September's report, Eoghan Carr, Economist and Policy Analyst at Limerick Chamber said that it highlighted the "constant up-hill battle" renters and prospective buyers face. 

"To add insult to injury, just 4% of homes listed in Limerick were A rated, while there were no A rated homes listed in Clare and Tipperary. With the winter looming, the uncertainty surrounding energy prices amongst other inflationary pressures, will be cause for concern amongst renters."

"There needs to be a strong drive at political level to ensure energy upgrades for property can done at an affordable level for owners, which in turn will be passed to renters through more affordable energy bills.”