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Average Kerry rent €1,125 – up 101% from its lowest point

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Rents in Munster rose 12.6% year-on-year, reflecting very low availability - with just 131 homes available to rent on May 1 - down over two thirds year-on-year.

In Kerry, rents were on average 15.4% higher in the first quarter of 2022 than a year previously. The average listed rent is now €1,125, up 101% from its lowest point.

Nationwide rents in the first quarter of 2022 were an average of 11.7% higher than the same period a year earlier, according to the latest Rental Report by daft.ie. The average market rent nationwide between January and March was €1,567 per month, up 2.8% on the last three months of 2021 and more than double the low of €765 per month seen in late 2011.

While there have been differences in regional trends in rents in recent quarters, the rate of increase was similar across all major regions between early 2021 and early 2022. In Dublin, market rents rose by 10.6% year-on-year, while in Cork and Galway cities, rents rose by 10.2% and 13.8%. Inflation was higher in Limerick and Waterford cities, at 15.5% and 16.2% respectively, while outside the cities the average increase was 12.7%

SCARCITY

The sharp increase in market rents around the country reflects a significant worsening in the record scarcity of rental homes. Nationwide, there were just 851 homes available to rent on May 1, down from over 3,600 a year ago and another new all-time low in a series that extends back over 15 years to 2006. The recent fall in homes to rent is seen in all regions of the country, with an 81% fall in availability in Dublin and a 66% fall elsewhere in the country. The report also includes an analysis of 72 multi-unit rental developments, which are estimated to have added at least 400 new rental homes in the last six months. Of these, it is estimated that 82% are already occupied, with occupancy in the wider multi-unit rental sector estimated to be 95% in early May, up from 93% six months ago.

The report also includes an estimate of the trend in rents for sitting tenants since 2010, as compared to new tenants paying market rates. While inflation in market rents is currently above 10%, and market rents have doubled over the past decade, ‘stayer’ rents have increased by just 1.5% over the past year and by less than 40% over the past 10 years.

“The latest figures confirm the overall strength of demand for rental accommodation in Ireland," Ronan Lyons, Associate Professor of Economics at Trinity College Dublin and author of the Daft Report, said.

"While strong demand for housing reflects underlying economic health, it becomes a challenge when there is inadequate supply to meet it. In Ireland’s case, the economy has suffered from an under-provision of new rental accommodation for over a decade. As a result, market rents have doubled and, as shown in this latest report, rental homes have become unbelievably scarce. New figures confirm that sitting tenants have experienced much smaller increases in rents – both during 2021 and over the last 10 years. Thus, the focus for policymakers must remain on creating the conditions for tens of thousands of new rental homes – market and social, all across the country – to be built over the coming years.”

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Killarney hotels are still open for business

By Sean Moriarty Only a few of the town’s 37 hotels are homing displaced people – according to Bernadette Randles, chair of the Kerry branch of the Irish Hotel Federation. […]

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By Sean Moriarty

Only a few of the town’s 37 hotels are homing displaced people – according to Bernadette Randles, chair of the Kerry branch of the Irish Hotel Federation.

This week she said that there’s still accommodation to be found in Killarney for visitors.

She was speaking in relation to the current accommodation situation facing International Protection Applicants and Ukrainian war refugees.

She explained that there is a perception that Killarney has taken in too many refugees and that it is putting the tourism industry at risk as people are starting to think that the town is at full capacity.

“If you can’t get a room in Killarney there is something wrong,” she said. “Maybe with the exception of New Year’s Eve.”

She added that hotels that are providing emergency accommodation are helping off-season unemployment.

Many hotels remain in survival mode after two years of pandemic turmoil and the additional off season business is important, she explained.

“Many could be closed at this time of the year, others would not be operating at full capacity,” she added.

However, she warned the Government needs to put a plan in place before the tourism season starts next year. Some hotels offering emergency accommodation either have a three or six month contract.

“I can see there will be tears next April – the Government must have a long-term plan,” she said.

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Homing refugees worth almost €14m

By Sean Moriarty Hotels, B&Bs and other accommodation suppliers in the Killarney area have secured contracts in excess of €13 million to accommodate Ukraine war refugees. The Department of Children, […]

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By Sean Moriarty

Hotels, B&Bs and other accommodation suppliers in the Killarney area have secured contracts in excess of €13 million to accommodate Ukraine war refugees.

The Department of Children, Equality, Disability, Integration and Youth released figures to the Killarney Advertiser.

Documents show that contracts totalling €13,852,255.00 are being shared between 13 premises in the Killarney urban area.

However, the department warned these figures are “indicative” only and the full value of the contracts depends on “occupancy and actual usage”.

The Eviston Hotel has secured a contract worth €5,727,590.00, the Innisfallen Hotel in Fossa for €2,404,620.00 and The Hotel Killarney signed a deal worth €1,701,000.00. These are the three biggest contracts published in the documentation.

This is only the tip of the iceberg, and Department officials say more contracts could come on stream. Figures seen by the Killarney Advertiser only cover contracted premises up to the end of September this year and updated figures are only released every three months.

“We are in contract with far more, but the formal exchange of contracts can take place sometime after the service commences,” a department spokesperson told the Killarney Advertiser.

“The Department of Children, Equality, Disability, Integration and Youth is obliged to publish a list of contracts formally signed off each quarter that have been awarded under a special EU Derogation that permits the Department to enter into contracts in the context of the Ukraine accommodation crisis without going to formal tender.

“The values of the contracts shown are estimates; the actual value materialises upon occupancy and actual usage. Standard contracts have no-fault break clauses available to both parties so again, the figures are indicative rather than actual.”

These figures only cover Ukrainian refugees fleeing the war and do not include International Protection Applicants.

The Department refused to release International Protection Applicant figures to the Killarney Advertiser.

“The International Protection Applicant accommodation contract information is commercially sensitive information and is not available,” added the Department spokesperson.

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