Rents rise in Mayo ahead of controls

RENTS rose nationwide by an average of 3.2% in the third quarter of 2015 - the largest three-month increase since early 2007. In Mayo, the increase was more severe, with rents on average 4.7% higher than a year previously.

The increase comes ahead of government measures to limit increases in rents.

The national average rent between July and September was €964, compared to €882 a year previously, according to the latest quarterly Rental Report by Daft.ie.

In Connaught, rents rose by an average of 6.6% in the year to September 2015, compared to an increase of 1.2% a year previously. In Mayo, rents were on average 4.7% higher in the third quarter of 2015 than a year previously.

The average advertised rent is now €560 - up 8% from their lowest point in 2013.

Supply on the market is at its tightest on record, with just over 4,000 properties available to rent nationwide on November 1, 2015.

Commenting on the report, Ronan Lyons, economist at TCD and author of the Daft report, said: “The latest report suggests that the market reacted to talk of rental controls, with, for example, rents rising by 7% in Cork in three months and by 6% in Galway, by far the largest three-month increases seen in a series that extends back 10 years. Ultimately, while controls on rent increases may help those at risk of becoming homeless, they do nothing to help those already homeless. The much more pressing issue that needs to be addressed is the lack of supply, which ultimately depends on the cost of construction.”