Rising rents fall short of criteria for Rent Pressure Zones

While official statistics show that private rented accommodation costs continue to surge in electoral areas such as Tuam, Loughrea and Connemara, they will not have ‘pressure zone’ restrictions implemented as they fail to meet all the criteria.

Those Local Electoral Areas – which cover broad swathes of the county – have seen significant rent hikes over the past two years.

An analysis of the statistics by the Connacht Tribune found that while they meet, or exceed, the criteria to be declared Rent Pressure Zones in terms of increases (which states there must be an increase of 7% or more in four of the last six quarters), they do not meet the condition whereby the average rent must be in excess of the national average.

For example, the Tuam LEA – which stretches from Monivea to Headford, to Creggs and Ballymoe – has seen rent inflation in excess of the 7% for six of the last six quarters.

However, the average monthly rent stands at just under €634, which is 64% of the national average of €986.

Therefore, the LEA does not satisfy ‘pressure zone’ criteria which would restrict annual increases to a maximum of 4%.

That will provide little reassurance to renters in private accommodation in the likes of Headford, which is the most expensive location in County Galway in which to rent, according to new Government figures.

The latest statistics from the Residential Tenancies Board and Economic and Social Research Institute (ESRI) show that the average person in private rented accommodation in the town pays €1,064 per month.

That’s up €107 per month (11%) on a year previously, and significantly higher than the average monthly rent for the county at €905.

The Loughrea LEA – which stretches from Kilcolgan to south of Gort, to Portumna and up to Kiltullagh – has seen hikes in excess of 7% in five of the past six quarters. However, the average rent stands at €630 per month, around 64% of the national average. 

The Conamara LEA – which spans from Barna to the islands and Leenane to Clonbur – has recorded rent inflation in excess of the 7% marker in four quarters. The average rent stands at €739, around 75% of the national average.

Meanwhile, the Athenry-Oranmore LEA has seen the 7% mark exceeded in three quarters and the average rent is €841 (85% of the national average).

The Ballinasloe LEA has recorded one quarter over the 7% mark, and the average rent is €587 per month, around 59% of the national average.

Meanwhile, the three urban LEAs in Galway – City Central, City East and City West – have already been declared Rent Pressure Zones by Housing Minister Simon Coveney.

City East has recorded inflation of 7% or more in six quarters and has an average monthly rent of €961, or 97% of the national average. City Central recorded five quarters over the 7% market and average rents stand at €1,021, or 103.5% of the national average. City West recorded four quarters and has an average rent of €1,042 (106%).