Cost of rent in Galway climbs to second highest in Ireland

Galway Daily news

The cost of rent in Galway has climbed a position in the national rankings, passing Cork to become the second highest in Ireland.

The average cost of rent in Galway city was €1,187 per month in the third quarter of this year according to the latest report from the Residential Tenancies Board.

This is second only to Dublin where the average rent now stands at €1,680, and above the national average of €1,122.

The cost of renting in Galway city has risen by more than 10% since Q2 2018 according to the RTB, with a €115.

Cork fell to third place on the table with average rents of €1,172, up by €114 in the last quarter.

Out in the county costs are slightly lower, with the average cost to rent now standing at €1,1,04.

But it has seen a similar level of increase, with prices going up 10% since Q2 2018.

Meanwhile, as rents have continued to increase the number of landlords has dropped drastically by 1,778 since 2015.

According to the RTB, the number of people in the rental market has also dropped with 8,829 fewer people renting than three years ago.

Director of the Residential Tenancies Board Rosalind Carroll said the declining number of landlords was of “deep concern”.

“If we are to meet demand and ensure a well-functioning rental sector, then we need more landlords and different types of landlords to offer market options.”

“With many landlords leaving, it is increasing strain and pressure and this must be addressed,” she said.

There is some indication that the rent pressure zones are beginning to have an effect according to report, as the rate of price increases declines.

The year-on-year price increase for existing tenancies (5.4%) has been significantly lower than that for new renters (8%).

However both of those figures are still sitting well above the 4% a year cap mandated by the rent pressure zone.

This shows that more needs to be done to enforce existing rules on the rental market to get spiraling prices under control.

“It will be important that the new legislation coming into effect in 2019, equips the RTB with sufficient powers to investigate and apply sanctions where there are contraventions to the rent restrictions in Rent Pressure Zones and that these powers can be implemented effectively,” Rosalind Carroll said.