Kilkenny joins Rent Pressure Zones to tackle rising costs

Kilkenny is one of 19 counties that have been included in the Rent Pressure Zones (RPZ) by the Residential Tenancies Board - a move welcomed by the local Chamber of Commerce.

According to the Chamber of Commerce there are families where both parents are working that have come close to homelessness as they cannot afford accommodation.

Marion Acreman, President of Kilkenny Chamber of Commerce stated: “I welcome this measure as the local market is inflated beyond affordability. This has resulted in new business being deterred from coming to Kilkenny as employees have struggled to find adequate housing. The basic need of a home has been jeopardised as the rental market goes above the national average.

“The very real issue of home instability can create very long lasting negative social and psychological impacts for the children of the families affected too which could resonate for them into the future,” she added. It now means that rent in Kilkenny is restricted to a 4% per annum maximum rise. Other areas include Portlaoise, Graiguecullen, Portarlington and Gorey. 

According to the The Daft.ie Rental Price Report 2019 Q1 the average rental cost in Kilkenny is €939 facing a 6.7% growth from the previous years. The situation has deteriorated to the point that, in some cases, getting a mortgage is cheaper than tenancy. According to the report, a 3 bedroom house with a 3.5% variable mortgage for a term of 30 years would cost €581 whereas a rental property of that nature would be priced at €892. This rental value for that type of accommodation is also a 5.2% increase from its market price the previous year. 

Kilkenny has been struggling with inadequate housing supply for years. There are just 2,700 homes available to rent nationwide - the lowest total recorded since 2006.