1 February 2017
By Bryan T. Smyth
Minister for Housing, Planning, Community and Local Government, Simon Coveney, T.D., has signed Orders this week designating Ballincollig, Carrigaline (the Northern/’City side’ only), Douglas and Passage West as Rent Pressure Zones. The new Orders mean that rent increases in these local electoral areas will be limited to a maximum of 4% per annum for a three-year period.
In consultation with Cork County Council, the Housing Agency looked at rental markets in local electoral areas in Cork County to identify whether they should be considered for designation as rent pressure zones. They used data from the Residential Tenancies Board (RTB) and from commercial residential property letting websites for this first analysis. On the basis of this analysis, the Housing Agency recommended that a number of local electoral areas in Cork County be considered for designation by the RTB.
Minister Coveney said: “As has been the case in Cork city since just before Christmas, rent increases in Ballincollig, Carrigaline, Douglas and Passage West will be limited to a maximum of 4% per annum for a three-year period. The new rent pressure zones were designated because they meet the criteria which are that rents are above the national average and that rent price inflation has been 7% or above in four of the last six quarters.”
“In making these designations, I am delivering on the commitment I gave when I published the rental strategy in December. At that time, I indicated that I would work with the RTB to ensure that more refined data was available to allow for more specific targeting of the measure to other areas in Cork where severe pressures were being experienced.”
“While we have made very significant progress in a short space of time to have this new system in place and to ensure that we can properly target this intervention towards those areas facing the most severe pressures. Over the medium term though, additional supply is the right way to address rental pressures.”
“I am also keen to highlight that those areas in Cork not designated as rent pressure zones are still under the protection of the RTB – which is an agency of Government with statutory powers.”