Over one-in-three renters spend more than a third of their income on rent

Renters reported a high volume of 'crammer' households, with respondents reporting an average of 3.7 unrelated people sharing their home.

A new survey of renters has identified a high proportion of so-called ‘crammer households’ but found that tenants would be happy to stay renting if long-term, high-quality, affordable accommodation was provided.

And despite a strong desire for homeownership among those surveyed, most renters say a new long-term cost-rental model is an attractive option for them.

The findings have been published by the Land Development Agency (LDA) today. 

The agency, which was set up in 2018 to deliver affordable homes on state and other lands, aims to deliver a large portfolio of cost-rental accommodation for the state under the government’s Housing For All plan.

The cost-rental model seeks to decouple rent levels from the market, and instead charge rents that cover the costs of constructing and maintaining the homes.

It will be aimed primarily at those who don’t qualify for social housing but who can’t afford the private market.

The model ensures that rent increases are linked to the rate of inflation, thereby providing tenants with a predictable and typically lower level of rent.

The LDA wanted to gauge the challenges faced by renters and it commissioned Behaviour and Attitudes to survey 520 adult renters.

It found that a third are paying unaffordable rents - more than a third of their income on rent - with 32% of renters paying more than this, rising to 38% for the Dublin area, and with one in six people spending over half of their net income on their monthly rent. But, 67% of them saw cost-rental as a housing option for them, with 89% saying they like the idea in principle.

The survey also showed a high proportion of so-called ‘crammer’ households with respondents reporting an average of 3.7 unrelated people sharing their home, in a bid to be able to afford the rent.

The LDA said its cost-rental option would help give these people an affordable option to avoid the ‘crammer’ scenario.

The research also found that 78% of those surveyed said affordable rental levels that could only increase by limited amounts were a prime factor that would make renting more attractive.

Better security of tenure (61%) and enhanced green/open space (52%) were identified as the two other leading factors.

The desire for homeownership was strong with 84% of respondents saying they aspire to own their own home at some stage but the research suggests that where high-quality affordable long-term accommodation is provided people are happy to choose it, at least for a period of their lives.

An affordable rental sector is a common option in many European countries, including Germany, Netherlands, Sweden and Austria, with homes usually rented unfurnished.

The vast majority of people surveyed said this wouldn’t be a problem for them here, with just 36% of respondents saying that a home being furnished was a key requirement, dropping to 26% in Cork and 18% in Galway.

John Coleman, Land Development Agency CEO. Picture: Kieran Ryan-Benson

LDA chief executive, John Coleman, said the research has given the agency a better understanding of the aspirations and challenges faced by renters in Ireland.

“We believe the cost rental model that is central to the LDA’s strategy can help address a crucial gap in the market to give a fair deal to the many thousands of people who currently struggle to meet their housing needs in an affordable way,” he said.

“Our focus now is on using the increased resourcing and pipeline of sites made available as part of Housing for All to accelerate delivery.

The LDA has targeted a number of strategic landbanks for development, including in Cork’s docklands, on the city’s former St Kevin’s site overlooking the Lee Fields, on Limerick’s Colbert Station site and on the site of the former central mental hospital in Dundrum in Dublin.

Enabling works are due to start in the coming months on the St Kevin’s site for 266 homes.

A tender process is in place to appoint a contractor for the construction of 597 social and affordable homes on the LDA’s first project at Shanganagh, in Co Dublin where the first homes are due to be completed in 2023.

And a delivery office has been established for the redevelopment of Cork’s docklands in partnership with Cork City Council, where the 146-hectare site is capable of accommodating approximately 25,000 people.