‘Shockingly low’ level of available housing behind soaring rents in Waterford
There is a “shockingly low” level of rental housing available in Waterford city and country which is driving up the cost of rents locally, a leading estate agent and industry expert has said.
Regina Mangan, managing director of Liberty Blue Estate Agents, spoke out after new figures released this week revealed the average rent in Waterford city has now climbed to a record €1,007.
Ms Mangan pointed out that Waterford still enjoys lower rental rates than in Dublin, Cork, Limerick and Galway, and said it is likely towns such as Tramore and Dungarvan will be included in the Government’s Rent Pressure Zones over the coming months.
She also said the 4% cap “has stabilised the inflation rise”, but stressed the chief underlying reason behind rising rents is the chronic shortage of housing to tenants.
“Stock supplies are still still shockingly low,” Ms Mangan said.
“However, the cost of renting properties is also prohibitive for many landlords, especially smaller landlords with one or two properties who are in negative equity and in some cases have to pay up to €600 in tax for every €1,000 they earn in rent.”
Latest quarterly figures published by the property website Daft.ie this week revealed rents in the city are up €5.5%, while in the rest of the county they are 11.5% higher.
Overall in Munster, average rents increased by an average of 10.1% in the year to September 2019 and are 23% above their previous high in early 2008.
The prices paid in Waterford are below the national average which is now €1,403 as rents rose by an average of 5.2% nationwide in the year to September 2019.
This marks the lowest rate of rental inflation across the country since the second quarter of 2013.
The average listed rent is now €373 per month higher than the previous peak in 2008 and almost €660 higher than the low seen in late 2011.
Average rents, and year-on-year change, 2019 Q3:
- Waterford: €1,007, up 5.5%
- Dublin: €2,044, up 3.9%
- Cork: €1,372, up 5.5%
- Galway: €1,299, up 5.9%
- Limerick: €1,219, up 5.9%
- Rest of the country: €1,001, up 6.8%