Rental crisis hits Cavan

Daft Report shows rents rise by almost 14%

Rising rents across County Cavan have made it cheaper to service a mortgage than it is to rent, according to a report released by Daft.ie earlier this week.

The Rental Price Report found that accommodation rental prices in the Breffni county have increased by 13.8% (€855) in comparison to last year.

Along with this, the availability of rental accommodation is at an all-time low nationally with only 2,455 homes available nationwide at the start of the month.

A search of Daft.ie yesterday (Tuesday) returned just six properties for rent in County Cavan.

The news will come as a blow to third-level students seeking accommodation as they prepare to return to face-to-face learning next month.

Speaking on the crisis, managing director of Smith Property Raymond Smith said rental accommodation in Cavan Town is “very scarce”.

“There’s lots of people looking and very little stock,” he observed.

Raymond feels that a lot of landlords are exiting the market, with “no real incentives” when it comes to renting out a property.

He further explained there were a lot of “accidental landlords” in Cavan Town from 2007 onwards. At this time, many people had to move from their principal private residence to alternative areas for employment. They became landlords as, due to the economic crash and negative equity, they were unable to sell their property.

Now, over a decade later in 2021, Mr Smith said many people are opting to “sell off their property, exit the market, clear off their debt and move on”.

That said, residential stock levels are a problem, locally and nationally.

Supply and demand

Mr Smith estimates that, in Cavan, they have fallen by around 50% over the last 10 years, with on average only ten properties sold to investors per annum in this time frame.

“It is still 100 houses but there are long-term tenants in those houses who are not moving. They have no reason to move because their job now allows them to stay at home,” he continued.

The typical turnaround for tenants in the past was every three years, it is now six plus years the estate agent remarked.

He said housing schemes such as the Rental Accommodation Scheme (RAS) and the Housing Assistance Payment (HAP) Scheme have given landlords “peace of mind” that money would be coming in. People availing of such schemes are living in properties for a longer term, which has exacerbated the shortage in accommodation.

“It probably has lessened the supply on a more frequent basis,” said the auctioneer.

“The landlord seems to be happy and it’s just leaving it very tight for any prospective tenants looking to rent a property,” he added.

According to the Daft.ie report, the average rental price of a one-bed apartment in County Cavan is €609 per month. In neighbouring County Monaghan, the figure is €648.

Typical mortgage repayments for this same apartment in Cavan stand at €214 but there are issues around mortgage approvals and availability of properties to purchase.

Mr Smith says “everyone” will struggle to source accommodation in Cavan, which has become “very attractive”.

“It is a good town, a good county for that matter.”

He added: “The rental market is a tough market, it’s a tough area of the residential market. I definitely wouldn’t envy anyone looking for rental accommodation at the moment.”

With third level colleges in both Cavan and Monaghan, some students are seeking rental accommodation.

“It’s going to be very tight for students to get accommodation I think come this term,” predicted Mr Smith.

However Deputy Director of Cavan Institute Gerry McKenny said the college is “not aware” of any accommodation crisis among students.

“We’ve had no communications in relation to this,” he said.

He explains the “majority of our students travel” to the campus.

The college is expecting over 1000 students this coming school year. They provide an accommodation notice board on the campus and a ‘Student Accommodation Cavan’ Facebook page to help students source a place to live.