Words: Eva O’Beirne
A key advisory body to the Irish Government has suggested that tax breaks should be considered for landlords who offer better terms to tenants.
The National Economic and Social Council, which provides advice on strategic policy issues, has submitted a report to Cabinet that examines the current shift from home ownership to rental, and the resulting growth in the rental sector.
The report recommends that “improved tax treatment of rental income could be introduced, and there is a case for linking this to more secure occupancy for tenants”.
The news comes after the Daft.ie Rental Report for Q4 of 2022 revealed a number of worrying statistics regarding the Irish market.
The average monthly rent in Ireland now stands at 1,733 euro per month – in August of 2022 it was 1,618 euro.
There were almost 15,000 homes listed for rent in Dublin during 2022 – which is half the number that was listed in 2021.
Meanwhile, the cost of renting a room in Dublin is now roughly 13 per cent higher on average in the final quarter of 2022 than in the year previous.
Average rent in the city centre is now 2,263 euro per month, with the most expensive region to rent in Dublin being in the South of the county, costing an average of 2,564 euro per month.
The “Rent-A-Room Trends” section of the report contained similar worrying percentiles, with the average rent for a single room on the North side of Dublin increasing by 27 per cent between 2021 and 2022.
Market rents rose by 2.9 per cent on average in Dublin in the final quarter of 2022.
Compared to a year ago, market rents in Leinster are 13.1 per cent higher – the second-highest rate recorded in the last eight years.
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