OPINION: Tackling unsustainable increases in rent must be top priority for new Government

HOUSING – along with health and the cost of living – is one of the top issues which concern voters according to survey after survey in the lead-up to the General Election on Friday, November 29 next.

But an issue linked to the housing crisis – the unsustainable quarterly increases in rent – is also a critical problem for many who are desperately trying to get their foot on the housing ladder or have been frozen out of the housing market altogether.

This morning - Wednesday, November 13 - Daft.ie has released details of its latest Rental Price Report for the third quarter of 2024.

Its shocking findings, both locally and nationally, show the extent of the problem and the urgent need for the new Government to take measures to effectively tackle it.

According to the report, market rents in Offaly increased by a massive 10.7 per cent on average between the third quarter last year and the similar period this year.

In the county the average listed rent is now €1584, up 68pc from the level prevailing when the Covid19 pandemic occurred.

Market rents across the midland counties rose 10.9pc year-on-year, albeit down from 15.6pc earlier in the year.

The on-going increase in rents reflects very tight availability, with just 40 homes available to rent on November 1 in the region, down almost half year-on-year and just one fifth of the late 2010s average. previously.

After 18 months of improving availability, the number of homes available to rent on the open market right across the country is falling.

On November 1, there were just over 2,400 homes available to rent across the country, down 14pc on the same date a year previously and well below the 2015-2019 average of almost 4,400.

"The target for the new Government has to be giving the same priority to the rental sector that has been given to owner-occupiers and to social housing over the last few years. Otherwise, it’s hard to see when conditions will change," said Ronan Lyons, Associate Professor of Economics at Trinity College Dublin, when commenting on the report.

"The new Government will have to address the lack of supply of private rental housing early in its term, if it is to bring about a change in conditions similar to what Dublin enjoyed in 2023 but across all rental markets.”

These startling report findings confirm that the country is in the grip of a major housing crisis which particularly affects those trying to get on the property ladder and those seeking rental accommodation,

As such introducing measures to encourage more landlords into the rental market and the construction of more houses by private contractors must be a priority for this Government and succeeding administrations.

But the new Government must also intervene directly in the situation by building more social housing for those who will never be able to buy their own homes.

Ireland also needs a functioning housing market to attract and retain talent to our shores if the country is to maintain economic growth particularly in view of the major international threats to the global economy.

Ireland's population is increasing at one of the fastest rates in the developed world and the 26 counties is now home to over 5.3 million people, the highest since the Great Famine of the 1840s.

The population, between net inward migration and natural increase, is growing by over 60,000 people per annum.

As a result there will be no abate in the demand for housing and rental accommodation in the foreseeable future.

As such the new Government must firmly place the housing issue at the top of its agenda and take realistic measures which will have a positive impact in the market.