Local rental crisis as supply shortage sparks price surge
The crisis in the local rental sector has been laid bare by dramatic new figures showing double digit rises in rent in both Westmeath and Roscommon over the last twelve months.
Figures released by Daft.ie as part of its quarter two 2021 rental report showed that in Westmeath, rents were on average 9.9% higher in the second quarter of 2021 than a year previously. The average listed rent is now €1,117, up 112% from its lowest point.
In Roscommon, rents were on average 16.1% higher in the second quarter of 2021 than a year previously. The average listed rent is now €829, up 68% from its lowest point.
Roscommon's increase is the second highest in the country, behind only Kerry, at 16.5%.
Nationallly, rents have increased by 5.6% - the strongest year-on-year increase since mid-2019.
Astonishingly, nationally, the report found that rental supply has hit an all time low with only 2,455 rental homes available across the country - this is lowest number on record.
The situation is replicated locally. On Tuesday morning (August 10) the dire lack of rental properties locally was evident as a search of the daft.ie website revealed just eleven listed in Athlone and surrounds ranging from €650 a month to €1,250.
In Moate, it is even worse with just two homes listed for rent on the daft.ie website, one of which is the luxurious eight-bedroom Bishopstown House, costing a cool €8,000 a month to rent. The other is a four-bed house in Tennis View costing €1,250 a month to rent.
In Athlone and surrounding areas, a one-bedroom unit in Portaneena, Ballykeeran is the least expensive listed on the website at €650 a month, while a two-bed apartment in St Peter's Port will cost €1,000 a month. A one bed apartment in St Mary's Square is available for €1,250 a month to rent.
Other areas listed include a one-bed unit in Auburn Terrace for €825 a month or a two-bed unit in Sean Costello Street for €900 a month.
Interestingly, there was just one house or family home in Athlone listed in the available properties to rent yesterday (Tuesday) at Castlehall Park in Bealnamulla listed at €1,250 a month for a three-bed terraced dwelling.
The most expensive listed is in the Jolly Mariner development along the Shannon. A two-bed apartment here is listed for rent at €1,275 a month on the daft.ie website.
The situation for anyone looking to share a house is slightly better but the numbers here are still very low, given that students will be searching shortly for accommodation once the college offers come out.
There are 27 properties listed where someone can share a room in Athlone and surrounding areas, while Moate is only showing a further two available. The price range to share a room locally ranges from €350 to €550 a month.
Ronan Lyons, economist at Trinity College Dublin and author of the Daft report, said: “As the impact of Covid-19 on daily life begins to recede, the underlying issues facing Ireland’s rental sector are re-emerging. It is a sector facing unprecedented shortages, with extraordinarily tight supply
“Ireland’s rental sector has undergone a lost decade and half, with almost no new rental homes built. This cannot be solved by trying to regulate prices. It can only be solved by adding significant amounts of new supply – and not only in Dublin. In that regard, policymakers – and citizens – should be wary of anything that limits the ability of foreign savers to build new rental homes here.”
Student accommodation
On August 1, there were less than 800 rental homes available outside Dublin.
As president of the students' union for the new AIT and LIT technological university, Aine Daly said the amount of rental accommodation available was definitely down this year.
"We don't have anything at all in Limerick. In Athlone, we still have some (properties) coming in, but all the digs are gone because of Covid and safety concerns that people have.
"I don't think we felt the pressure as bad last year, because students essentially weren't back on campus. Now the plan is to get everybody back on campus, and our apartment blocks are filling up.
"In the past, the digs were our safety net, but now they're gone because of Covid," she said.
She also criticised the lack of funding from Government for Technological Universities (TUs) to build new student accommodation.
"The Government recently announced €75 million for universities to build accommodation, but not Technological Universities, which makes absolutely no sense.
"The crisis isn't just affecting Dublin, or University students, it's all students. TUs still don't have access to borrow-to-build, so we have no way of getting accommodation for students even though our student numbers are going to increase with the TU," she said.