Housing charity Threshold have said that renters are now facing a more difficult property market then ever, despite the introduction of new legislation to prevent discrimination against those in receipt of rent allowance.
In the five months since the government legislation was introduced, market rents have continued to increase and are now more than 20% above the rates payable on the rent allowance scheme.
Niall Horgan, regional manager of Threshold Cork, said the legislation, which banned ads which state “no rent allowance accepted” has not had the impact that had been hoped for.
There are currently fewer than 100 properties to rent in Cork city according to property websites Daft.ie, Myhome.ie and Property.ie. An increase in demand has also caused a rent spike, with monthly rates averaging €861.35 per month.
The allowance for a single person in Cork on the rent allowance scheme is just €485, with the average one-bed property costing €623 per month – 22% more than the limit. The situation is the same for those looking for two and three bed properties, too.
Threshold has called for an increase to the amounts payable on the scheme, in addition to rent certainty measures that would provide greater security for tenants during leases.