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MINISTER FOR HOUSING Simon Coveney has signed orders that will designate Maynooth, Co Kildare, and Cobh, Co Cork as rent pressure zones, which will limit the annual rent increases in these areas to 4%.
The expansion was announced at the launch of the Residential Tenancies Board (RTB) expanded rent index report, which showed that private sector rents across the country grew by 7.8% in the last quarter of 2016, compared to the same period last year.
Private rents in Dublin are now 8.3% above their peak level reached in 2007, while the country as a whole is 2.7% below its 2007 peak.
The standard national average rent as 2016 closed stood at €986 per month.
The pace of growth in the Dublin rent index exceeded that of house prices in the fourth quarter of 2016.
Minister Coveney said that the report “represents a major innovation”, involving collaboration between the RTB and ESRI which “will give us a significantly more detailed understanding of market behaviour in the rental sector”.
The new report now focuses on more localised geographical data for the first time by focussing on different rents in the 137 Local Electoral Areas across the country.
Coveney said that his department used the report to target the areas facing the most severe pressures from rent increases, so that they too could be designated rent pressure zones.
Any area where rents had gone up by more than 7% in four out of the previous six quarters, and where the rents were above the national average qualify to be designated rent pressure zones.
Four Dublin local authority areas, and Cork City, were chosen as areas which would limit annual rent increases in December, and a further 12 areas in Galway, Kildare, Meath and Wicklow were designated as rent pressure zones in January.
With the addition of Maynooth and Cobh local electoral areas, Coveney said that some 57% of tenancies nationally are now located in rent pressure zones.
Drogheda had also been up for rent pressure zone status, but while rents had risen by more than 7% in the previous six quarters, rents for the entire area were still not above the national average and so it did not qualify.
When questioned over the huge rents in areas of Dublin, which in some cases are double the national average, Coveney said the zones “did not solve everything”.
He said that building more houses was key to lowering rents, and that the 4% rents controls were designed to give “some certainty” to tenants living in areas of high rent.
“The practice effect of these measures,” he said, “is that more than 186,000 households who currently rent their homes in these areas now know exactly what maximum rent they will have to pay over the next three years.”
In June, six months in to the policy, it will be possible to ascertain the initiative’s effectiveness, Coveney added.
With reporting from Cormac Fitzgerald
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There is always opposition to a good idea
@Johannes Baader:
@Johannes Baader: your right – the DAA are likely to object to thr good ideas proposed in thr submission
@Johannes Baader: It’s a good idea, but the residents have a point. Converting a roadside layby into a viewing area is not ideal. I’m sure DAA has a suitable spot which they could utilise. Most airports have a viewing area and it’s not a converted layby.
What is wrong with people in this country!
Little to be moaning about!
To be fair to the objectors, one of the main points they are making is the new plans are only allowing for 22 car parking spaces…I drove passed the existing area a few days ago and there was more than 22 cars parked…
@John Carolan: Question! Do the objectors not want it, or do they want it bigger????
@Ollie Fitzpatrick: I’d say if it’ll be bigger, they will object it too.
I object too, it needs to be bigger and with toilet facilities.
@Fiona Wyse: go before ye go smh
@Alex Kane: you obviously have not met my bladder!!
@Alex Kane: Wise advice to everyone!
@Fiona Wyse: oh and a coffee shop too. …. let’s go all out cop on ffs
There will always be a group of people that will take the joy away from anything. It’s already used a veining spot and can be a bit unsafe at times, and now the DAA wants to make it safer, maybe enjoy a cup of coffee with the kids. Let’s fight thrm back.
@Gerard Reilly: good idea most would agree, but with the usual deficiencies – which those objecting are looking to address now. Let them get it right first before they construct it.
@Gerard Reilly: the DAA broke every rule in the book changing their flight plan after they got their planning . More and more planes comming over our direction . DAA Bullied people around St Margrett s and surrounds so yous know nothing
Its a hell of a lot better than what’s there at the moment.
The idea for an observation deck is great! However, I think opposition is good for an open dialogue. I believe the deck should be on land that is not owned by daa. I think there should be negotions that would conclude with daa constructing the building, ongoing maintenance, security and housekeeping of the area, all without cost. Further, the negotiations should figure in no charge for the public to use the facility.
People may have objections, as they do. But they should not be able to block projects based on feelings.
@smatrix mantra: is it a feeling that 22 places isn’t enough? Is it a feeling that there should be adequate toilet facilities…. Or are these valid observations?
Probably looking for some hush money
The DAA does not own the land they are proposing to develop, what right do they have?
No doubt, if it did get developed they would start charging excessively for it.
They wud be better sorting out the car park beside the new runway its always full of trucks which despite the signage sayin no parking put out by fingal co co! Its supposed to be a viewing area! But there is always moaners i luv to watch planes but i wonder have any of the objecters ever done so! Or is it the object to anything faction concerned with the daa!
Fkin nimbys.
No craic Ireland. Moany, self-entitled kill-joys everywhere.
Only @Eamon is hoping to witness a crash.
Let’s be honest, they’re all there hoping to witness a crash.
@Eamon: you need to educate yourself Eamon. What a ridiculous comment.
@reg morrisey: clown.
@Eamon: if I took my daughters to this for the day that’s the last thing I want them to see thanks very much, and myself!
@Nick Vasilakis: Like dalmatian spotting but with a bigger brush.
I’ll get me coat.
WTF is “plane spotting”?
Didn’t realise Fingal CoCo had a Dogging Department
When Ballymun Flats where first built residents on Ballymun avenue changed the name to glasneiven avenue and built a wall at the rear of them.
Now They have a multitude of aircraft flying over them and the high rise flats are gone how times never change but do.
Nimbyism at it’s finest!
I’m just surprised no one mentioned the aspect of antisocial behaviour. A covered seated area on a back road prime for let’s say ” boy racers” to rock up with some refreshments for a twilight meet with the pals
There’s going to be some seriously awkward dogging going on there.
Would they not be better getting more parking or better shuttle services
Look up it’s Air Lingus or is it?
Does it have a bar?
have your say