Surge in Demand for Homeownership in Ireland “Amid Escalating Affordability Challenges”
Dublin: A recent study conducted indicates that 40% of individuals residing in privately rented accommodation in Ireland are foreigners. Despite constituting only 12% of the total population, these foreigners predominantly find themselves in rented houses. Many of these individuals, often termed ‘economic migrants’ seeking employment, express a willingness and ability to purchase a home in Ireland. However, the challenges of soaring property prices and a housing shortage in the market hinder their homeownership aspirations.
The Residential Tenancies Board (RTB) commissioned Amarach to collect survey data from diverse stakeholders, including small, medium, and large landlords, tenants, and letting agents. According to the findings, 83% of tenants in the private rental sector reported being content or very positive about their current accommodations. Notably, this sentiment might be influenced by the lack of viable alternatives, particularly for migrants.
Contrastingly, 3% of respondents expressed a negative opinion about their rented accommodation. These findings align with the initial phase of the study conducted in 2021. The average rental expenditure, representing up to 30% of monthly net income after tax, was consistent with national figures. However, the study did not specify variations in rental patterns among Ireland’s cities.
While 70% claimed their rents had not increased since the start of their tenancy, caution is warranted, as this data may not cover individuals residing in rent pressure zones, such as Dublin. Additionally, one in five tenants receives some form of government assistance.
The majority of tenants (78%) are employed, with only 33% living with their families, revealing potential limitations in the study’s scientific approach. Almost half (49%) anticipate homeownership within the next decade, but their primary concern is the difficulty of finding comparable homes at affordable rents.
The survey shed light on the influence of large property owner groups, deterring tenants from switching to more affordable options independently. The government’s role appears limited in this regard. Interestingly, 90% of small landlords expressed positive relationships with their tenants, while 55% opposed the continuation of property renting as a profession, citing concerns about profitability.
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