‘National emergency’ as further rent rise predicted will push people into homelessness

The Simon Community has warned of a “national emergency” as rising rents push people into homelessness.

The warning comes on the back of figures from the Private Residential Tenancies Board (PRTB) which show monthly rents for private sector accommodation across the country are 8.6% at the end of September compared to the same period in 2014 — houses were 7.7% higher and apartments were 9% higher than in the third quarter last year.

In monetary terms, the PRTB’s quarterly rent index shows the increase nationally was up from an average of €830 per month to €901. Apartments rose from €866 to €945 and houses rose from €810 to €873.

Those renting a house in Dublin can expect to pay an average of €1,408 per month, compared to €712 outside Dublin. The corresponding figures for apartments are €1,265 for Dublin and €698 outside the capital.

The rent index is compiled on behalf of the PRTB by the Economic and Social Research Institute and is based on 28,240 tenancies which commenced in July/August and September this year.

The index shows that nationally, rents peaked in the fourth quarter of 2007 before declining by 25.7% to their trough in the first quarter of 2012.

“By Q3, 2015 rents nationally were 11% lower than their peak,” said the PRTB.

“While the peak-to-trough in the Dublin market was similar to that experienced nationally, the strength of the recovery in Dublin means that now rents are just 2.3% lower than their highest point.

“In contrast, the market outside Dublin has experienced more subdued growth and so rental levels remain 15.5% off their peak levels.”

The Institute of Professional Auctioneers & Valuers said the two main factors driving rent increases were the Central Bank’s “overzealous” mortgage lending restrictions and the delay in implementing “rent certainty” measures.

It also predicted that when the rents are examined for the last quarter of this year, they will probably have risen by proportionately more.

Niamh Randall, national spokeswoman for the Simon Communities, said the PRTB index provided further evidence of a housing crisis that is out of control.

“Rising rents are pushing people into homelessness all around the country,” she said. “The situation is getting worse. This is a national emergency, people are being priced out of the private rental sector, which not only puts them at risk of homelessness but also prevents people from moving out of homelessness.”

She said growing numbers of people are stuck in emergency accommodation as a result of the crisis.