Government orders crackdown on rogue landlords as rents soar across the country

The average monthly rent is now €1,352 per month. 

Rent across Ireland has increased nationally at a rate of 7% for Q2 of 2021, a level of increase that the Residential Tenancies Board (RTB) has described as a "source of concern".

Housing Minister Darragh O'Brien has instructed the rental watchdog to "aggressively identify and pursue non-compliance with rent-setting responsibilities". 

The report focuses on the period as the country left lockdown and notes a particular spike in rents in commuter areas near cities.

Nationally, the average monthly rent now stands a €1,352 per month. It is the largest increase in rent prices since Q1 2019.

In Cork city, year-on-year increases of 6.3% were reported and followed by a higher figure in Cork county at 9.4%. 

The standardised average rent in Cork City stood at €1,344 per month in Q2 2021, almost €300 higher than for Cork County at €1,051.

Cork is also among one of ten counties with standardised average rents above €1,000 per month. 

Limerick is the only other Munster county to be listed in this group with rents in Limerick city rising significantly in Q2 by 8.7%.  The standardised average rent for the city was €1,196 according to the RTB. 

Waterford saw rent prices increasing at a rate of 9%, however it is the only city in the country with average rents below €1,000 at €969.

The rate of increase matches similar figures reported elsewhere in the country as rents outside of Dublin rose at a 10.4% rate of inflation year on year. 

In Dublin, year-on-year rent price inflation stood at 4.4% but the average rent is much higher at €1,848 per month. 

This compares to standardised average rents of €1,058 per month outside of the county. 

Non-compliance risk

Speaking about the latest rise in national rent prices, Padraig McGoldrick, Interim Director of the RTB said national rent increases have rebounded after an initial slow down due to Covid lockdowns. 

With the return to economic activity, rents are rising in the commuter belt near Dublin indicating the pandemic has resulted in people moving away from urban areas.  

The RTB is yet to examine the effect of new legislation linking rents to inflation instead of a 4% cap but Mr McGlodrick has said the level of reported increase is still concerning. 

“While the latest rent levels will not yet have been impacted by the change in rules for rent setting introduced in July, the level of increase in Q2 2021 is a source of concern and, while there may be legitimate reasons reflecting the rate of increase, it may also indicate an unacceptable level of non-compliance by landlords with rent setting regulations restricting rent increases in Rent Pressure Zone areas (RPZ). 

"The impact of not complying with these measures can be very severe, and the RTB is committed to ensuring increased compliance with these requirements," he said. 

Mr McGoldrick has said the RTB is currently investigating over 400 cases of non-compliance by landlords in relation to rent increases. 

"Where landlords circumvent the legislation in relation to RPZ rent caps, the RTB has the power to investigate and apply sanctions, with fines of up to €15,000 and/or costs up to €15,000. 

"As of quarter 2 2021, the RTB has commenced almost 400 investigations into improper conducts and to date almost €260,000 has been refunded to current and former tenants as a direct result of breach of rent setting rules," he said. 

Crackdown

The housing minister has instructed the RTB to crackdown on rogue landlords in the wake of the soaring increases.

Darragh O'Brien told the watchdog to "aggressively identify and pursue non-compliance with rent-setting responsibilities". 

Mr O'Brien said he has deep concerns about the level of price increases reported and said he is committed to ensuring full protection for tenants renting in Ireland. 

Noting the RTB's capacity for sanctions and investigations, Mr O'Brien said not adhering to RPZ legislation must be understood as a serious offence. 

"They are an essential pillar of rental policy and the impact of not complying with these measures can have severe knock-on effects – it is essential that people understand that non-adherence to RPZ legislation is a serious offence.

“In this context, I have called upon the RTB ensure that their full powers and resources are brought to bear in initiating and executing a robust and thorough campaign to identify non-compliance and breaches in RPZ rent increase restrictions and related procedures, including those related to rent reviews and notification of exemptions from the restrictions," he said. 

The minister said further work will take place to highlight the penalties of failing to comply with RPZ and encouraged tenants to the RTB's rent pressure zone calculator for price increases. 

“I am particularly concerned for any tenants who might be facing, or are already contending with, a rent increase because of their landlord’s non-compliance.

“I would encourage anyone seeking more information on rent pressure zones to visit the RTB website where a new rent pressure zone calculator is available to help landlords, letting agents and tenants understand if a rent increase is permissible and, if so, the upper limit allowed," he said. 

On Twitter, Sinn Féin's spokesperson for housing, Eoin Ó'Broin said the latest report makes "grim reading for renters" and that the government has no plan to stop surging rent prices.