Rents in Dublin are now nearly 4% higher than they were at the peak of the boom in 2007. According to the Residential Tenancies Board, rents across the country were up by nearly 10% from April to June, compared to the same period last year.
Residential Tenancies Board's director Rosalind Carroll said the last couple of quarters had actually seen a slowdown in the pace of growth in rents, so the RTB was actually surprised with the latest figures which showed such significant growth, especially in the Dublin market where prices moved 4.5% higher. Ms Carroll said the board believes the drivers behind the increased rate of growth include the return of net migration, continued undersupply and seasonal factors.
For the first time, Ms Carroll said the board had tried to look beyond the prices and actually see how many people are paying the higher rents. Its research shows that over 25% of the tenancies that were signed in the last quarter were over €1,300, which Ms Carroll described as a significant figure
The pace of growth in rents outside the main cities is also speeding up, with the growth rate up to 2.9%. Ms Carroll said there is no sign that the growth will stop and she said that work needs to be done on the rental strategy so that some of the underlying factors can be addressed.
The Residential Tenacies Board has noticed a slight increase in the number of complaints it receives from tenants. It worked on over 4,000 rent disputes last year, which represented only about 1-2% of total tenancies. Ms Carroll said that most relationships are working well between landlords and tenants. Of the disputes coming before the board, they have changed from issues like deposits to rent arrears and overholding, where people stay beyond their notice of determination has finished because they have nowhere else to go. The disputes are moving from more tenant-centred disputes to landlord related issues, she added.
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Delivery service and logistics company Nightline has opened three new depots following a €3m investment. This will see the company hire an additional 150 staff. The three new sites are at Swords in Dublin, Omagh in Co Tyrone and Kilbarry in Waterford.
Nightline's chief executive John Tuohy said that the main driver behind the business's expansion is the huge growth in online shopping - which is showing no signs of waning. In the final quarter of this year - which includes Christmas - the company expects to deliver 25% more online shopping orders than the same time last year.
As the likes of Amazon move more towards drone delivery, Mr Tuohy said that realistically drone delivery is something very futuristic. He said the move towards 3D printing, where everyone will have a 3D printer in their home, is also an issue facing the industry. But he adds that people will still need the consumables for their 3D printers. "Until eleporting machines are invented, you will still need physical logistics and Nightline is here to provide that," he concludes.
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MORNING BRIEFS - The rate of job creation here over the second quarter was the second highest in the EU. Figures from Eurostat, the EU's statistics agency, show the overall number of people in employment in Ireland grew by 1.1% over the three months to the end of June. That compares to an average 0.3% across the EU and was second only to Lithuania's 1.7% growth figure.
*** Energy prices rose during August, according to the latest Bord Gais Energy Index. The monthly report measures the overall cost of energy for households and businesses looking at the combination of oil, gas and electricity prices. The 5% rise in the overall index was driven by rising oil prices during August. Since then, however, OPEC's own report predicted a likely increase in output from non members and earlier this week the International Energy Agency forecast that supply will continue to outstrip demand for oil well into next year. Wholesale gas prices, meanwhile, were down 12% during August according to the index. Meanwhile, Electric Ireland is the latest supplier to flag a cut to its gas prices which it has just announced will fall by 5% from October 1.
*** Music streaming service Spotify has now signed up over 40 million paying subscribers. Spotify's founder and chief executive Daniel Elk tweeted the news saying 40 is the new 30. The service has 100 million users overall but the majority of those use its free subscription model which lacks some of the features of the paid-for premium service and is supported by advertising. Global revenues from streaming passed $2 billion last year.
