Economics: Latest report shows Irish house rents still elevated

The figures from the latest Rental Price Report, released this morning, don’t make for happy reading for tenants, those worried about homelessness and those whose focus is national competitiveness.

Having fallen for almost three years between 2008 and 2011, and then largely treading water until late 2012, rents have now risen for 21 consecutive quarters. The upswing in rents is now not only significantly longer than the preceding downturn but also than the upswing before that downturn, which lasted from mid-2004 until early 2008.

The worry is that the trend is persistent and shows no signs of easing. That said, the annual rate of inflation in rents nationally has decreased from 13.4% at the start of the year to 11.2% now. Still, the rate of inflation remains – for the sixth quarter in a row – stubbornly above 10%. In addition, the quarterly increase in rents between June and September was 3.4%, the fourth largest ever recorded.

This means that four of the five largest recorded quarterly increases in rents have happened since the start of 2016. That’s the picture at a national level, and while the trend is more acute in Dublin, the problem is spread across the country.

Alan McQuaid (14/11/17)