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Renters unable to afford to buy, with property prices expected to continue rising

Independent.ie logo Independent.ie 11/08/2017 Ellie Donnelly
Stock Image: GETTY © Provided by Irish Independent Stock Image: GETTY

Almost one in two people in rented accommodation or living with their parents who want to buy their own home are unable to afford to, according to a survey carried out by insurance group 123.ie.

And the outlook for this cohort is not particularly positive, with 80pc expecting house prices to rise over the next 12 months.

Yet despite the noise around increasing rents, the majority of people living in rented accommodation (60pc) saw their rent rise by less than 4pc in the past year.

"This figure isn’t actually surprising, given that more than half of those renting are living in a designated Rent Pressure Zone (RPZ), which caps rent increases at 4pc each year for three years," Padraig O’Neill, head of marketing at 123.ie., said.

Whilst most tenants incurred relatively modest rent increases, a quarter of tenants reported a rise of more than 10pc in the past twelve months, and 14pc said that their rent had gone up by more than 15pc in twelve months.

Of the landlords that took part in last month’s survey on the rental and housing market in Ireland, 70pc said that they had not put up the rent on their properties in the past twelve months.

However landlords were critical of the RPZs, with 72pc of the opinion that the introduction of RPZs did not have a positive affect on the housing crisis, arguing that RPZs fail to address the lack of supply of housing in the market.

The survey also found that the vast majority (69pc) of landlords had a mortgage on their rental property, and of those, one in three landlords are in negative equity.

When it comes to the home-owners surveyed, more than six in ten have one or more bedrooms idle, with 15pc of respondents saying that they would consider renting out their home on Airbnb.

The results come ahead of next week’s release of the Leaving Certificate results which will see an increase in the number of people, mainly students, looking for rental accommodation, particularly in urban areas.

The 123.ie House & Home Survey was carried out amongst 834 landlords, homeowners and renters / living with parents in Ireland and covered a range of issues including rental properties, mortgages, renovations and Rent Pressure Zones.

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