Spiralling rents make homelessness worse, says charity

Spiralling rents are undermining efforts to combat homelessness, according to the Peter McVerry Trust.

The latest rent index report from the Private Residential Tenancies Board shows the cost of renting an apartment in Dublin is now 10.8% more expensive than it was a year ago.

Pat Doyle, CEO of the housing charity, said it was very concerned for those reliant on rent supplement to maintain or secure rental properties.

Speaking following the publication of the report, Mr Doyle said: “Action needs to be taken to help alleviate the situation. The one major issue that we face is rising rents. Inaction on this and rent supplement means that homelessness is increasing instead of decreasing.”

Rents rose nationally by 6.9% in the year between the first three months of last year and the same period this year. Rents for houses were 6.5% higher, while apartment rents were 7.8% higher. In Dublin, house rents rose 9% and apartments were up 10.8%.

The average monthly rent for private sector accommodation across the whole country now stands at €835 — up from €781 in 2014. The average rent for apartments nationally was €878 (€815 a year earlier) and for a house it was €814 (€765 a year earlier).

In Dublin, in the first quarter of this year the average rent for a house was €1,325 and €1,205 for an apartment. A year earlier, the rent for a house was €1,215, and for an apartment it was €1,087. This represents a monthly increase in Dublin rent of €110 for a house or €118 for an apartment over 12 months.

According to Savills Ireland, the latest figures make further house price increases inevitable.

“While deposit rates have fallen by 28% since the end of 2012, property yields have held up better due to rental growth,” said Savills’ director of research Dr John McCartney. “This relative swing has diverted money into bricks and mortar, and this will continue.”

Savills say investment will remain focused on Dublin with its attractive yields.