Clare rents would have to rise by more than 15 percent and then continue to go up in line with the national average for parts of this county to be considered as rent pressure zones.
It follows Minister for Housing Darragh O Brien’s announcement that the system is to be replaced next year.
Rent pressure zones or RPZ’s are designated by electoral area, and there are five of those in Clare – Ennis, Ennistymon, Kilrush, Killaloe and Shannon.
Any area designated as an RPZ would see rents there only permitted to increase by a maximum of four per cent per year.
For an area to be considered an RPZ, rental prices must be above the national average – which excludes Dublin – and having inflated by 7 percent or more in four of the last six quarters – in other words, a year out of the previous 18 months.
The standardised average rent nationally outside of Dublin is €904 according to the Residential Tenancies Board – which decides whether areas can be an RPZ and only determines average rents by registered tenancies.
In Clare, though, that figure stands at 778 euro – meaning rents here would have to rise by 15 percent just to meet one of the two criteria needed.
Shannon’s average rent of 901 euro puts it almost on par though – but, again, would require at least a further year of rises before rent pressure zone considerations were implemented.
Killaloe’s stands at 853 euro, Ennis at 803 euro and Kilrush’s at a far lower 568 euro – no figure was available for Ennistymon when the RTB was contacted by Clare FM.
It means that Minister Darragh O Brien’s announcement of a tweak in the system at the end of this year will be welcome news for renters in the Banner – the detail of those tweaks will be revealed by the Department of Housing in due course.
