Hard-pressed tenants here are shelling out more than 35% of their disposable income on rent, a shocking new survey revealed today.
Struggling people are being left crippled financially and affordability remains a significant issue, according to the RTB Rental Sector Survey Reports data.
Tenants across the country are splurging on average of 36% of their available and expendable money on rent.
Meanwhile, in Dublin, 64% of private renters indicated that they spend more than 30% of their net income keeping a roof over their head.
Pádraig McGoldrick, the interim director of the RTB, said: “The RTB’s Rental Sector Survey provides a comprehensive insight into the current private rental sector.
“The last number of years have been ones of constant change so it is the hope that this report will establish an evidence base of data around the actions and intentions of private landlords and tenants, and that the information will facilitate an up-to-date and informed policy perspective for a rental sector clearly experiencing a wide range of difficulties.”
The survey found affordability is a huge issue as rent levels are often seen as out of their control and not linked to income.
Exactly half of all tenants surveyed stated that they spent 30% or less of their monthly net income on rent.
A similar proportion of people spent more than 30% of their monthly net income on rent, with 12% claiming that they spent more than 50% of their monthly net income on rent.
The study revealed the profile of landlords is changing with 26% of small landlords who have one to two tenancies stating they plan to sell a property within the next five years.
Meanwhile, large landlords with more than 100 premises plan to continue to invest and expand their portfolios.
At the same time, while growing, large landlords currently still only manage less than 6% of private tenancies in the sector.
A significant 79% of tenants said their renting experience was positive or very positive.
Elsewhere, 88% of small landlords said that they have had a positive or very positive experience with their current tenants.
President Michael D Higgins signed a rent increase bill into law last Friday which will lead to all new rent increases being linked with the country’s inflation rate.
Housing Minister Darragh O’Brien introduced the Residential Tenancies (No. 2) Bill 2021 to the Dail in June.
Before the legislation was signed into law landlords were able to increase rent in Rent Pressure Zones by 4% annually.
There were also concerns landlords were using the end of the rent freeze as an excuse to dump two years’ or 8% worth of rent rises on unsuspecting tenants.
