Threshold response to Daft.ie July rent report
20 August 2020
In response to Daft.ie’s rental report for July 2020, CEO of Threshold, John-Mark McCafferty said:
“It is welcome that there is greater supply in the market compared to the same period in 2019; however the majority of this increase is concentrated in Dublin and, crucially, is not reflected by decreasing rental prices.
“While the 92% increase year-on-year in supply of properties in Dublin is welcome, a closer look shows that this actually amounts to little over 1,500 additional properties. With over 3,500 households homeless in Dublin in June, and over 1,500 throughout the rest of the country, the private rented sector simply cannot be relied upon on its own to provide the affordable, secure homes that are desperately needed. A state building programme to provide affordable homes for rent and purchase is the only reliable long-term solution.
“While the year-on-year rent increases in many counties are modest – such as in Galway and Cork Cities, at 2% and 2.3% respectively – we can see spikes in areas such as Laois and Kilkenny, at 4% and 4.2% respectively. This points to the need for county-wide Rent Pressure Zones. It is encouraging to see year-on-year decreases in some counties such as Roscommon, Mayo and Sligo, which all saw decreases of between 1% and 4.4%.
“Despite encouraging signs such as decreases in the average rent in some counties, and the increases in some areas being relatively modest, the fact that the national average rent continues to increase remains a concern. Vulnerable renters won’t be comforted by an increase in supply if rent prices are not being significantly reduced as a result.”