Housing crisis: Tenants spend 36% of income on rent 

Renters expressed concerns about affordability and security of tenure to researchers

Irish tenants spend, on average, 36% of their net income on rent, with a fifth of tenants renting because they can’t get a mortgage.

The statistics, contained in new research from the Residential Tenancies Board (RTB), also show that a majority of tenants (79%) describe their experience of renting in the private rental sector in general as ‘positive’ or ‘very positive’ with just 3% stating their experience has been negative.

However, despite the vast majority stating their experience has been positive, renters expressed concerns about affordability and security of tenure.

Respondents said there was “always the nagging doubt that the tenancy could come to an end and they will be back at square one.” 

Respondents also described rent as “dead money,” with researchers noting that the scale of rent as a proportion of take-home pay means that most renters have little opportunity to save for a property of their own.

Of those surveyed, half of tenants said they expect to be owner-occupiers in ten years time.

Some renters also said rent levels were “not linked to income” with 12% of tenants revealing they spend more than half of their take-home pay on rent.

When asked why they were renting, a fifth said it was because it suited their “current situation,” while 17% said it was because they don’t know where they want to live long term.

A fifth were renting because they can’t afford a mortgage while 15% said they were renting while they saved for a deposit for their own property.

Of those surveyed, half said they expect to be owner-occupiers in ten years time.

Rising rents 

A quarter of tenants surveyed said their current rent is higher than when they first moved into the property. Of those experiencing an increase, the majority said it has occurred in the past two years. 

The average difference in rent now versus when the tenant first moved into their property is also higher in Dublin at €266 on average compared to €135 outside of Dublin.

The survey also found that those renting in Dublin face paying a higher deposit at €1,450 on average while those outside of Dublin pay €800 on average.

In the capital, the most common living arrangement is sharing with others (27%) while outside Dublin the majority (39%) say they rent with their spouse or partner and children.

The RTB conducted over 1,000 face-to-face surveys with tenants and 500 telephone surveys with landlords as part of the study.