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TENANTS ARE, ON average, spending 36% of their monthly income on rent, according to a new survey.
The Residential Tenancies Board (RTB) rental sector survey, launching later today, looks at the country’s private residential sector using the views of tenants, landlords and letting agents. It included a nationally representative survey, nad five thematic focus groups with tenants.
Tenants in the survey were asked what percentage of their monthly net income (after tax) goes towards paying rents. The survey found that on average, tenants spent 36% of their monthly net income on rent, though this was higher in Dublin. The median rate spent on rent was 30%.
Half of all tenants claimed they spent 30% or less of their monthly net income on rent, while a quarter said that they spent more than 40% on rent.
The most common living situation among Dublin renters is ‘living with others’ (27%). Outside of the capital, the most common living situation among renters (39%) is ‘living with my spouse or partner with children’.
The survey also found that those renting in Dublin face paying a higher deposit for their current property (€1,450 on average) when compared with tenants renting outside of Dublin (€800 on average).
When asked their reason for renting, 20% of people said it was because they can’t get a mortgage, while 15% are renting while they save the deposit for a house.
Looking to the future, 36% of tenants expect to still be renting in ten years’ time, while 50% expect to be the owner of their own home in ten years’ time – 34% say the same in five years’ time.
When it came to the relationship between landlords and tenants, 79% of tenants said their renting experience was either positive or very positive.
Some 88% of small landlords surveyed rated their experience with their tenants as positive or very positive when managing their tenancies.
The survey found that 26% of small landlords, owners of one or two properties, are planning to sell a rental property within the next five years. However, large landlords (with over 100 tenancies) say they are planning to continue to invest and expand their portfolios.
The RTB’s tenancy registration data shows that small landlords who own one or two properties make up about 86% of all landlords, and supply an estimated 53% of the private tenancies in the rental sector. At the same time, while growing, large landlords currently still only manage less than 6% of private tenancies in the sector, according to RTB data.
“Despite any potential changes in the profile of landlords, these smaller landlords will nevertheless likely continue to provide the most significant proportion of the private rental accommodation for the sector well into the future,” said Pádraig McGoldrick, Interim Director of the RTB.
“However, with 26% of small landlords indicating an intention to sell a property within the next 5 years, there is potential for increased pressures on supply and rent levels during this period.”
Following the signing of the rent increase bill into law last week, all rent increases are to be made in line with the nation’s inflation rate.
The Bill will ensure that rent for properties in Rent Pressure Zones (RPZs) can only be increased in line with the Harmonised Index of Consumer Prices (HICP).
Previously, landlords had the power to increase rents in RPZs by 4% annually.
There were concerns that landlords would impose rent increases of up to 8% on tenants once the temporary ban on evictions and a rent freeze set during the height of the Covid-19 pandemic came to an end. However, this law will not allow for an 8% rise.
The RTB will establish and maintain a new RPZ calculator and publish a table of relevant HICP values to assist with the lawful setting of rents in these pressure areas.
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Let’s blame Airbnb for a housing shortage that FG are unwilling and incapable of solving. Reduce capital gain tax and incentivise new developments through tax. Stop the building height restrictions. Half of north Dublin City is in ruin with empty houses all over it.
A few weeks ago he said he wasn’t going regulate it, I think this guy is making it up as he goes along.
Kirk he’s trying to be popular FG leadership coming up ok
A lot of people that rent out rooms etc on Airbnb, do so out of necessity. It provides an income supplement that many people needed during the height of the recession because of the austerity imposed by the government. Of course some people are going to make a fortune out of it, and more luck to them. In my opinion though, regulating Airbnb will only serve as a tax collecting tool, not something that will actually fix the housing crisis. I think their first port of call should be to reduce the tax on rental income that landlords have to pay. This would encourage more people to invest in property, as it would mean the property would pay for itself when rented out!
@pheilum. A lot of people also rent out entire properties on a full-time basis via airbnb. I agree that it won’t fix the housing crisis, but I strongly believe that those renting out full time should be regulated. They should have to apply for planning permission for change of use. After all, the premises is no longer a home. They should pay taxes and they should have to ensure that they meet health and safety standards. A person occasionally renting out a spare room entirely different.
Well if you agree that it won’t fix the housing crisis what is the problem? Btw who said they don’t pay taxes?
Coveney be better off regulating hotel prices in city’s over weekends ?
Only if he wants hotels to go out of business. Hotel prices are the sort of thing that don’t need regulation. If they’re too high, the rooms remain empty. If they’re too low, the hotel runs at a loss. Encouraging the building of more hotels – or the use of houses and apartments as short-term lets – would drive hotel prices down.
Convey, ask Europe what to do. If it suits FG, go for it , If not , ignore em. Ain’t that the FG way ?
Willy FG are a facist party
Regulate, regulate, regulate.
Keep regulating so that any competition to the status quo is abolished.
Keep regulating so that home owners can’t generate a small side income without being hammered with taxes.
Keep regulating so that there is no more innovation.
Keep regulating so that costs to employers are driver up thereby squeezing wages.
Keep regulating, Keep regulating, Keep regulating FFS.
Why isn’t there anyone standing up for property rights? Why is it the individual property owners responsibility to solve the housing crisis caused by government? The little guy paying the bills yet again
I don’t do ab&b but surely it’s a property owner’s responsibility to do what they want with he property they pay for?
Airbnb is responsible for bringing in tourists who spend a lot of €€€€€€€€, thread carefully.
Nanny state strikes again….
The more he interferes with the rental market the more flee from it ..including his beloved large professional landlord firms
The headline makes it sound like he’s looking for a brown envelope. “Satisfactory arrangement”, I wonder what that could mean?
When they say It’s not right, what they really mean is it exposes the government’s failure to adequately implement any real policy to address housing shortages. It has nothing to do with being right and everything to with making the government look incompetent and its housing policy look non-existent.
Airbnb overall increases the supply of accommodation. It has the potential to take an under-utilised resource… a house or apartment which is vacant part of the time or a place someone does not want to let long term and makes it available on the market.
Governments around the world are going to have to get used to a sharing economy and too technology easily, cheaply and efficiently connecting individuals with something to share with someone else that has need.
Why doesn’t he keep his fat nose out of our business?
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