Renters in the Republic of Ireland have a poorer experience of the private rented sector and lower hopes for home ownership than those in Northern Ireland, a study has found.
The first all-island survey by national housing charity Threshold and Northern Ireland advice charity Housing Rights found those in the Republic were “notably more pessimistic” than their northern counterparts.
They reported low security of tenancy, more frequent moves and renting longer in adulthood.
Northern Ireland renters are more likely to rent by choice, while more renters in the Republic want to become homeowners but fewer expect to be able to do so.
READ MORE
Overall, one in four of the 1,400 renters surveyed felt insecure about their current arrangements. However, the proportion in the Republic (30 per cent) was far higher than in Northern Ireland (17 per cent).
Rent increases in the past decade were more severe in the Republic, where they rose more than 100 per cent compared to 74 per cent in Northern Ireland.
Renters in the Republic reported spending 37 per cent of their income on rent compared to 32 per cent in Northern Ireland.
Arrears levels were similar, but they were likely to be a result of rent increases in the Republic, while in Northern Ireland, they mainly arose from a change in family circumstances.
Churn is also higher in the Republic, where renters spend on average 3.1 years in a property, and 2.8 years if they are in Dublin, compared with four years in Northern Ireland.
A marked difference between the two jurisdictions is the influence of income on renters.
In Northern Ireland, higher earners spend less of their lives renting, but in the Republic, they rent for an average of 12.2 years.
“The high cost of renting and purchase prices in the Republic of Ireland may be pricing lower-income households out of the private rental sector while keeping higher income renters renting for longer,” the report says.
The report also found big differences in the experiences of renters in the 18-35 age group.
More than half of young renters in Northern Ireland expect to be able to buy their own home, but only a third in the Republic do.
Younger renters in the Republic are also more likely to fear their landlord will terminate their tenancy, with 61 per cent expressing that concern compared to just 23 per cent in Northern Ireland.
Older renters felt similar levels of anxiety in both areas, with 73 per cent of over-55s in the Republic and 70 per cent in Northern Ireland fearing their landlord would end their tenancy.
Author of the report Kevin Cunningham said that despite the differences in the jurisdictions, insecurity was the common experience.
“The report reveals a predictability gap,” said Dr Cunningham.
“Renters in the Republic of Ireland face compounding price volatility and heightened termination anxiety, while Northern Ireland’s comparatively steadier conditions still leave too many unsure of their footing.
“The policy lesson is that design matters, but credible enforcement, clear rules on rent changes and terminations, and fast, trusted redress are what restore day-to-day certainty.”
Common solutions would help in both jurisdictions, he said, with policies that ensured affordability, availability, security of tenure and high standards in the private rented sector, plus a good supply of public housing.
The report is published today in advance of new regulations due to take effect in the Republic’s private rented sector from March 1st, which include widened rent caps and greater restrictions on ending tenancies.
Threshold chief executive John-Mark McCafferty said the changes were welcome, but Threshold would watch closely how they were implemented.
“How rent increases are treated will be pivotal,” he said.
“If rents can reset to market levels at different intervals, any gains in security could quickly unravel if households are priced out of their homes and out of the market.”
Housing Rights chief executive Kate McCauley said the study provided policymakers with strong evidence to shape better legislation and policy.
