Affordability in the property market remains a huge issue for those renting or living at home with their parents.
While more than 90 per cent want to purchase their own home, the latest 123.ie House & Home Survey found that 43 per cent of people renting or living with parents cannot afford to.
When it comes to buying their own home, the outlook for this cohort is not particularly positive, with 80 per cent expecting house prices to rise during the next 12 months.
The survey was carried out amongst landlords, homeowners, renters, and those living with parents, and covered a range of issues including rental properties, mortgages, renovations and Rent Pressure Zones.
Recent reports show that rents continue to trend upwards. However, the survey found that the majority of people living in rented accommodation (60 per cent ) saw their rent rise by less than 4 per cent in the past year.
“This figure isn’t actually surprising, given that more than half of those renting are living in a designated Rent Pressure Zone (RPZ ), which caps rent increases at 4 per cent each year for three years,” said Padraig O’Neill, head of marketing at 123.ie.
While most tenants incurred relatively modest rent increases, a quarter of tenants reported a rise of more than 10 per cent in the past 12 months. Some 14 per cent said that their rent had gone up by more than 15 per cent.
“Fifteen per cent is a huge jump for anyone in the rental market, particularly if trying to save for a deposit,” said Padraig. “This could mean an extra €2,700 a year on a rent of €1,500 per month, which is a substantial amount of money and could certainly hinder someone’s ability to save for a deposit and a chance to buy their own home.”
The good news for landlords is that a high proportion of people in rental properties plan to stay where they are, with almost one in three saying they are not planning to move from their current rental property quite simply because they like it.
The 123.ie survey was carried out online in July, 2017, among 834 adults in Ireland.