‘Aggressive’ rent hikes putting pressure on Limerick tenants as family see 70% increase

A LIMERICK family received a 70% rent increase for their home of seven years, bringing their monthly bill to €1,100 a month; just one of the “stark” cases the national housing charity has encountered here recently.

An “alarming” increase in the number of Limerick tenants needing the services of housing charity Threshold amidst rent hikes across the county has prompted calls for Limerick to be added to Rent Pressure Zones (RPZ) legislation. 

A “perfect storm” of combined factors, including “double-digit” rent increases and a lack of housing availability, have created an “incredibly difficult situation” for renters in Limerick, the charity’s national director has warned. 

“Limerick, which is outside the RPZs, is particularly concerning to us,” John Mark McCafferty told the Limerick Leader. “Because of the rate of increases in rents here and the shock and impact that is having on families.” 

His warning comes as the latest rental figures show hikes across Limerick, with rents in Limerick city  jumping almost 12% compared to the same time last year. In Limerick city east and west, average monthly rent is now more than  €1,000. 

“Rents are increasing very, very aggressively but they just aren’t increasing at the rate to trigger RPZ legislation applying to them.” 

Incomes are not increasing at the same rate, with salaries typically lower here than in Dublin, Cork or Galway, Mr McCafferty added. “In Limerick, there are already a lot of people struggling and we’re very conscious of the impact these increases are having on them.” 

“For example, someone who has just been about managing to budget €850 for their monthly rent, who are then confronted with a €300 increase.” 

“A growing number of people in that middle income bracket are also getting caught as private rental accommodation is their only option which is fine, if its affordable.”

Threshold is currently assisting one struggling tenant in Limerick, who is depending on food banks despite receiving a 20% increase in her HAP payment. 

As the property is not in a RPZ, the landlord is in a position to increase rent in line with market value.  After receiving two rent reviews, and subsequent rent increases, since 2016, the tenant is now receiving regular assistance from St Vincent de Paul. 

Another couple in Limerick recently contacted Threshold after the rent on their old, modestly sized apartment in the city was increased by €300, bringing it to €1,150 a month. 

Their case may be brought to the Residential Tenancies Board after they found their apartment had been compared to two, recently refurbished, three-bed homes in desirable areas as part of the review to increase their rent. 

Threshold also assisted a lone parent of three children told she had four weeks to leave the property they called home for three years after her landlord and his friend called to the door.

“The private rental sector is continuing to grow in real terms,” Mr McCafferty said. “We need further reform in the legal structures, hence the importance of legislation.” 

Threshold will operate freephone helpline 1800 454 454 during the Christmas period, from 10 am until 4pm Monday December 24 to Tuesday January 1.