New data from Daft.ie, released this morning, show rents have increased by 11.8% to €1,159 in the first half of the year. The findings also indicate the overall supply of residential rental properties has fallen again to just 2,900, down 20% on the previous year.
According to the report, the average rent nationwide has risen by 56% since bottoming out in late 2011 and, having exceeded its 2008 peak in 2016, is now 12.6% above the previous high. In Dublin, rents are now an average of 18.1% above their previous peak while in Cork and Galway cities, rents are 11.2% and 21.4% above levels recorded nine years ago. Outside the cities, the average rent is 5.8% above its previous peak.
The new data on rents come just six months after the enactment of Rent Pressure Zones (RPZ) which restricts rental increases to just 4% in areas such as Dublin, Cork city and Galway. In May of this year, Goodbody Stockbrokers warned that Rent Pressure Zones (RPZ), were not working, stating, "With stock levels remaining close to all-time lows, rents are likely to continue to rise from here, with a two-tier market between new properties and sitting tenants (even with the RPZs). Supply-side incentives will have to be once again contemplated if a dent is to be made in resolving this issue."