Hoping to move home to Cork this year?
National housing charity Threshold is warning workers to look before they leap as rocketing rents and a significant lack of supply could cause major headaches for those hoping to leave the capital and work remotely.
Daft.ie’s Q4 2020 rental report signalled “an exodus of working renters from Dublin,” during the last months of the year. However. anyone returning to Cork could have a tough time finding somewhere to live; there were just 462 homes available to rent in Munster on February 1st, the lowest figure ever recorded in the series, going back to January 2006.
“The rise in rents in all areas outside Dublin, alongside a fall in rents in Dublin, could be early evidence of workers who have been unshackled from offices in Dublin, seeking better value in the rest of the country.” said CEO of Threshold, John-Mark McCafferty.
“The increases in rents outside of Dublin that the report highlights are significant, however, and undersupply is evident, in Munster especially, as borne out by our Access Housing Unit in Cork, as it attempts to source much-needed yet scarce rental housing.”
‘Demand for almost every type of property is up’
Rents in Munster increased by an average of 4.6% from September to December 2020.
“That’s the largest three-month spike in rents since early 2006,” said McCafferty.
“Demand for almost every type of property is up. If we are about to see an exodus of working renters from Dublin, the supply needs to be there to meet them and the rents need to be affordable. Rental payments are still up to twice as much as mortgage payments and even more in some areas – renters continue to be squeezed while living in insecure housing, while rental yields for landlords remain steady.”
Assistant Manager at Threshold’s Access Housing Unit, Mairead O’Sullivan said Rent Pressure Zone legislation should help to keep rents level.
“Much of Cork has been designated a Rent Pressure Zone – however, we can see that the average increase there is 8.9% year-on-year, more than double the permitted 4%. With the RTB now in a position to investigate and pursue breaches of Rent Pressure Zone legislation, we would hope to see greater adherence to these rules,” added O’Sullivan.
Threshold’s helpline remains available Monday to Friday, 9am to 9pm at 1800 454 454 for any renter in need of advice or support.