RENTAL price rises have hit an all-time high, with supply at its lowest level since Daft.ie records began in 2006.
he cost of accommodation shot up by 12.6pc in the three months to June when compared to the same period last year, according to the Daft.ie asking price survey.
This is the highest level of rental inflation since Daft first started compiling the rental index 16 years ago.
The average monthly asking price hit €1,618 due to a chronic shortage of supply as small landlords leave the market in their droves.
There were just 716 homes available to rent on August 1.
The average monthly asking price for a new rental in Dublin is now €2,170.
The survey covers asking prices for new tenancy agreements. Most of those in existing rentals will not have had the same level of increase.
However, rental asking prices are up 3.3pc in the first three months of the year, according to Daft.ie.
The annual rental inflation rate of 12.6pc is higher than the previous peak of 11.8pc recorded in late 2016. It comes as figures released this week show that small-scale landlords are leaving the market in record numbers.
The number of termination notices issued by landlords to tenants, as notified to the Residential Tenancies Board (RTB), shot up by 58pc in the first six months of 2022.
Most intend to sell up. Rising interest rates, high property prices and complaints about regulation and taxes are cited as the reasons so many smaller landlords are selling up.
Daft.ie said that across the State there were just 716 homes available to rent on August 1.
Rental asking prices, at €1,618 a month, have now more than doubled from a low of €765 a month in 2006.
Dublin experienced an annual rental asking-price rise of 12.7pc in the second quarter. This is above the national average for the first time since 2018. Cork, meanwhile, underwent annual asking-price rises of 11.8pc. Galway has experienced a price surge of 16.4pc, with asking prices up 17.7pc in Limerick.
Outside the cities, average annual rises were up 12pc.
Daft.ie rental report author, and Trinity College associate professor, Ronan Lyons said the scarcity of homes was unprecedented over the past year. The 716 homes available to rent on August 1 was down from almost 2,500 a year ago.
And it is a new all-time low since Daft took stock of rental supply back in 2006.
Rental availability is now down almost 100pc since 2009.
Prof Lyons said: “A resurgent economy over the last year has accentuated the chronic shortage of rental housing in Ireland.
“While the professional rental sector has added over 7,000 new rental homes in the last five years, this is small relative to the fall of 30,000 in rental listings each year in the traditional rental sector in the same period, or the fall of 100,000 listings per year since 2012.”
He said the shortage of rental accommodation translates directly into higher market rents and this can only be addressed by increased supply.
Prof Lyons said there are almost 115,000 proposed rental homes in the pipeline, but these are concentrated in the Dublin area.
“While nearly 23,000 are under construction, the remainder are earlier in the process and the growth of legal challenges to new developments presents a threat to addressing the rental scarcity.”
Monthly rent in Dublin is up 12.7pc to €2,170, Daft.ie said.
In Cork, the average asking price is €1,670, while it is €1,663 in Galway. Limerick’s average asking prices are €1,600, and the average is €1,312 in Waterford city.
In the rest of the country the average annual rental asking price is up 12pc to €1,255.
Figures released to Sinn Féin’s Eoin Ó Broin by the RTB show that 1,781 tenants were served with eviction notices between April and June of this year – more than double the amount in the same timeframe last year (841).
Mr Ó Broin said “a chronic undersupply of social housing” coupled with the growing number of private landlords exiting the market is “driving the homelessness crisis”.
Focus Ireland is also calling for urgent Government action in the Budget to stem the exodus of landlords from the market. It has proposed a scheme which would allow landlords to build up significant tax relief on their income in exchange for a commitment to stay in the market.
Advocacy Director Mike Allen warned that without such a scheme “the level of homelessness will continue to rise beyond the capacity of homeless organisations to deal with it.”
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