Very neat message from RonanL in today’s Daft rental report:
Since 2013, market rents nationally have risen by just
over 50%. However, sitting rents have increased by
just 27%. In other words, those who have stayed in
the same lease have enjoyed a discount relative to
market rents, with rents increasing by just half the
increase seen on the market.
The implications for the system of Rent Pressure
Zones are obvious. In order to control sitting rents,
sitting rents themselves must be measured. It is not
helpful to rely on market rents in a rented sector
where now the typical lease lasts over three years.
Indeed, the survey undertaken for this Daft.ie
Rental Report suggests that for many – although by
no means all – sitting tenants, there has been no
dramatic increase in rents. This may mean that the
Rent Pressure Zone system makes things worse,
rather than better, by amplifying the insider-outside
nature of the rented sector.
Sitting tenants now enjoy not only a discount relative
to the market rent, but also protection of that lower
rent into the future. Meanwhile, movers in the
private rented sector face not only far higher rents
but almost no availability in the market. In such
a market, it would be a brave prospective tenant
who would ask the landlord to see proof that the
rent they would pay is only 4% higher than a year
The message from the rental market to policymakers
is the same as it has been for over five years
now: more supply is needed. Until policymakers
understand why it costs so much to build a twobedroom
apartment here, compared to anywhere
else in Europe, that’s unlikely to happen.