Tullamore now a 'rent pressure zone' after steep hike in Offaly rents in 2019
A new report has revealed that Offaly was the county with the second increase in rents paid by tenants over the course of 2019.
The average rent paid in the county went up by 12.7% over the course of the year. Only Kerry (13.3%) experienced a sharper hike in rents over the 12-month period.
While rent increases of any kind are currently banned, due to the Covid-19 crisis, Tullamore was today officially designated a 'rent pressure zone' from today, meaning that landlords are legally prohibited from increasing rents by more than 4% each year.
The latest quarterly rent index from the Residential Tenancies Board (RTB) was published today and covered the period of October-December, 2019.
It showed that Offaly was one of three counties - along with Kerry and Westmeath - which experienced an average increase in rents of over 10% last year.
The standardised average rent paid in the Offaly went up from €687 at the end of 2018 to €774 at the close of last year, representing an annual increase of 12.7%.
According to the report, the average rent in Tullamore stood at €874.73 at the end of last year, while the average rent registered in Birr was €539.76 and in Edenderry it was €781.21.
The average rent nationally was €1,226 per month, up by 6.4% (€74) when compared with a year earlier. Quarter-on-quarter, rents nationally decreased by 1.2% (€15) in the last three months of the year.
The report is based on the actual rents paid on 17,269 tenancies registered with the Residential Tenancies Board (RTB) nationally.
Padraig McGoldrick, Interim Director of the RTB, said he was "encouraged" that last year saw the smallest average annual rent increase nationally in six years, saying this showed there were "signals of stabilisation" in urban areas.
However, he said the Covid-19 crisis now presented "new challenges for both landlords and tenants" across the country. A rent freeze is currently in effect meaning that, while rent must still be paid, no rent increases can be requested.
Sinn Féin TD Eoin Ó Broin said the report showed that "despite Government spin" rents were continuing to rise last year.
"The latest figures confirm again the need for an emergency three-year rent reduction and freeze," he said.
"This could be achieved by extending the current freeze and, in Budget 2021, providing for a refundable tax credit to put a month's rent back into every renter's pocket.
"We also need the Minister for Housing Eoghan Murphy to meet with opposition politicians and representatives from tenants, landlords and banks to put in place a plan to deal with the rent arrears debt burden that will arise during the COVID-19 restrictions," said Deputy Ó Broin.