Rents continue to increase over the year by substantial amount

In reference to Irish private sector rents grew by 7.37% from 1st quarter 2016 to 1st quarter 2017 by Robert McHugh on 15 June 2017 in Business World.

Over the course of only a year, the average rent increased by 7.37% from 1st quarter 2016 to 1st quarter 2017. The standardised average national rent being €987, Dublin is one of the highest amongst the other counties as well as Cork and Galway. Looking over the houses and apartments market the trend of rents are continuing to grow.

Outside the Dublin county, the houses and apartment rents at a overall growth rate of 1.3% in private sector rents. Annual growth increased by 7.6% in houses and apartments. The margin is shrinking between the peak of 2007 and the 2017 first quarter however, it is still 8% below.

So far the 19 Rent Pressure Zones (RBZ) are located in parts of the following counties: Dublin, Cork, Galway, Meath. No other parts of the country are currently able to become Rent Pressure Zones, according the to latest Rent Index.

Mr. Simon Coveney, Minister for Housing, Planning, Community and Local Government, on June 15th claimed he will start a review of the Rent Predictability Measure and the Rent Pressure Zones system.

In Housing Prices are to Remain High in the Future blog post, there is evidence of housing prices to remain high as well. With rent and house prices increasing by a substantial amount, control factors are in place but may not be working. The Help-to-Buy scheme is currently under review for resulting in higher house prices when it should be helping first time buyers afford homes. When the review is released on the Rent Pressure Zones, the government can see if Ireland should be expanding those Zones. The government is aware of the increase of prices but finding the right policy to control that proves to be a challenge.

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