The reason prices for accommodation inDublin are so high is very simple. here are more or less the same number of homes as there were ten years ago, but there are 10 percent more people. At the same time, the economy has moved from recession to growth. There is just more money around. As a result, prices go up.
The theory of supply and demand is that new demand should now come on-stream in response to the increase in prices. But that hasn’t happened. The reasons for this are many and they need to be addressed. But there are three things that won’t help.
1. Capping the price of accommodation. Capping the price of accommodation with some sort of rent freeze provides welcome relief to existing renters, but it doesn’t really help much for people who don’t have accommodation or who have to move because their family is growing. Accommodation availability has reached a record low. The fact that the rent is capped is not much good to you if you cannot find a place to rent.
2. Increasing standards, implementing regulations for landlords. There are many good reasons to increase standards and implement new regulations. An example would be a deposit protection scheme. It provides a benefit for tenants, certainly, but it also adds a new cost and a new bureaucratic barrier. In general, regulations make it less attractive to landlords to be in the market. This means that there will be less rental accommodation. (It might result in more property to be available to buy, but that is not much good to you if you need to rent.)
3. Increasing building regulations and planning requirements. Building regulations today are a lot higher than they were 10 years ago. There are sound environmental reasons to increase standards, but ultimately, this means that houses are more expensive to build and take longer to build. Take the case of the iRES development in Rockbrook. This was originally supposed to be 456 homes, but an analyst reckons that this will now be reduced by 40 homes. There will also be a couple of months delay for a new application to be submitted.