Housing agency Threshold has warned that tenants are at serious risk of homelessness – prompted by a spike in rents in Galway City.
According to the charity group, some tenants in the city have been hit with increased rent demands of up to 30%.
Meanwhile, new figures from property website Daft.ie show that rents in private accommodation in Galway City have surged by almost one-third since their lowest point in 2008/9, while average rents in the county are up by one-fifth since the trough.
These increases – coupled with supply that has effectively ‘dried up’ – are putting some tenants at risk of ending up with nowhere to live, Threshold has warned.
Diarmaid O’Sullivan, Services Manager for Threshold in Galway, said: “A severe shortage of supply in the private rented sector in Galway is resulting in dramatic increases in rents and is putting some tenants at risk of homelessness.
“At the end of October, a mere 80 properties were advertised as available for rent on Daft.ie for the entire city and suburbs. The average cost of a one-bed apartment in Galway was €674, a two-bed housewas €1,076 and a three-bed house was €1,190.
“The situation in the private rented sector is reaching crisis point. Supply has all but dried up and this is driving rent inflation. This is a national trend, which is reflected locally in Galway.
“Threshold regularly deals with tenants who are faced with 15%, 20% or even 30% increases in their rent. Many tenants simply cannot afford such increases and are left with little option but to move out and seek alternative accommodation. But with such a shortage of supply, this may not be possible and they can quickly fall into homelessness,” said Mr O’Sullivan.
He said that new measures introduced by the Government last week – including limiting rent increases to every two years instead of annual rent reviews, and introducing a tax incentive for landlords to take people on rent supplement payments – will help, but are not a solution.
“These measures should go some way towards easing the challenges faced by tenants, but they don’t provide a complete solution to what is a complicated and multi-faceted problem.
“Tenants in receipt of Rent Supplement are finding it nearly impossible to find properties to rent under the maximum rent levels, as set by the Department of Social Protection,” said Mr O’Sullivan.
According to the Daft.ie report, average rents in the city are now €868 per month – up 12.2% on a year ago, and almost 32% since their lowest point in 2008/9.
At the moment in Galway City, a one-bed apartment is renting for €607 per month; a two-bed house for €672; a three-bed house for €835; a four-bed house for €898 and a five-bed house for €958.
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