Threshold shocked by yet further rent increases

General News

“Keep trying the same thing, keep getting the same result” says CEO

 The national housing Threshold has expressed shock at yet another increase in the average national rent at a time when over 300,000 people are now in receipt of the Pandemic Unemployment Payment.

“Half of those on the PUP are under 34 years of age and are likely renters”, according to Threshold CEO John Mark McCafferty.  “As we see rents rise again it is even clearer that while many changes have been made to rental legislation in an attempt to control rents, not enough has been done to tackle the problem of affordability.

“The core issue is simple:  There is not enough affordable housing supply.  The policy of relying on the private rented sector to provide housing for those on the social housing waiting lists or who can’t get a mortgage has failed.  It failed last year, it is failing this year, and if we try it next year it will fail then too.”

The report shows that an average one-bedroom apartment in Galway city would attract a monthly rent of €1021.  However, if the renter was actually able to afford the deposit, they would need to pay a monthly mortgage payment of just €486.

 “If they cannot afford this rent, they will perhaps rent a room in a shared house, the rents for which have increased by between 15% and 32.7% year-on-year in Galway City. Or if they have the option, move back with their parents. Both options only serve to delay entry into adult life.

“This situation will simply never change unless policy changes. The State must commit to large-scale social housing provision.”

Threshold said that while Dublin rent levels have not shown an increase in Q3 of this year, this is little comfort at a time when rents in the capital are already out of reach of many people.

“Also”, said Mr McCafferty, “the national headline figure of a 1.2% rent rise disguises the more substantial increases in counties such as Offaly which experienced a 6.5% increase and Longford where the increase was 5.8%. Some of this may well be a result of people leaving the cities once they had the option to work from home.

“However, while some may describe this as simple supply and demand at work, Threshold believes renters deserve more than this.”

Threshold would like to remind families and individuals whose tenancy may be at risk, that our trained housing advisors are only a phone call away and can be contacted on 1800 454 454.

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