Landlords forcing tenants into illegal ‘top-ups’, warns charity

Housing charity Threshold yesterday welcomed a new rent index published by the Private Residential Tenancies Board but warned that some landlords not registered with the board could be “masking” rent increases elsewhere.

The PRTB Index covers rents as received by registered members since 2007 up to the end of the first quarter of this year and indicates that rents are remaining high in a market in a growing rental sector.

The latest index figures show an average monthly rental figure of €785 overall on a mix-adjusted basis, with rents in Dublin standing at an average of €974.

Nationally rent prices have increased by 2% compared with the first quarter last year.

Aideen Hayden, chairperson of Threshold, said the index meant “more accurate information on rent levels for the first time”.

“Up to now, we have been reliant on data from property websites to track trends in rent levels,” she said. “Although useful, the information from such sites is based on the levels of rent being sought by landlords, as opposed to the levels of rent actually being received.

“Furthermore, property websites tend not to publish figures related to studio-style accommodation at the lowest end of the market. It is this part of the market where tenants face the greatest difficulty in sourcing affordable accommodation and where Threshold focuses our efforts to help vulnerable households.”

The senator also stressed the need for more landlords to register with the board.

“It is Threshold’s experience that landlords who do not register with the PRTB are most likely to take top-up payments from tenants, thereby masking real rent levels.

“The PRTB has made progress recently in stepping up its activities to ensure all landlords are registered; however, more needs to be done.”

Threshold chief executive Bob Jordan said the new information should help inform government policy in an era when one-in-five people are renting property.

“As anticipated, the PRTB index shows rents decreased by about 20% at the beginning of the downturn but, since 2010, they have remained stubbornly high, while average house prices have fallen by up to 50%.

“At the same time, the Department of Social Protection has slashed rent supplement levels by more than 25%.

“The PRTB index shows that the department’s strategy of seeking to bring down rents by reducing rent supplement payments has not worked.

“Instead, because rents have remained high, it is Threshold’s experience that many rent supplement tenants are being forced to make illegal ‘top-up’ payments to their landlords to keep a roof over their heads.”