Rising cost of rent could make more people homeless despite increased supply, charity warns

Simon Communities of Ireland urges Government to take steps to address soaring costs of rent The homelessness charity has called on the Government to take steps to address soaring rents. It also wants to see an all-of-government approach to prevent people entering homelessness.The number of people living in emergency accommodation rose to 16,996 in November, a 12pc annual increase and roughly enough people to populate one of the country’s 30 largest towns. Leixlip, Co Kildare, is the country’s 30th largest urban area, with a population of 16,733, according to CSO data.Simon Communities executive director Ber Grogan believes the homelessness crisis is at risk of getting worse. She said rent affordability is a massive issue. It means new supply is unavailable to low- and middle-income earners or households receiving supports like the housing assistance payment (HAP).News in 90 seconds - January 4 2026 “One of the frustrating things is that the Government talks about supply but if there are loads of new rental properties in Dublin city centre, or Cork and Galway that are set at current market rates, they are completely unaffordable,” Ms Grogan added.“There has to be a recognition that rents across the country have got to extortionate rates. We see in the services of the Simon Communities across Ireland that in the private rental sector the differences between HAP rates and the private rental market rents is so huge that it is clearly an issue,” she added.Average monthly rents hit €2,000 for the first time in 2025. Data published by property website Daft.ie show rents increased by a third since the beginning of the pandemic. Between last June and September the average monthly rent for a two-bedroom apartment stood at €2,080. Meanwhile, supply is scarce, especially outside of urban areas.New tenancy rules coming into force in March will aim to make the entire country a rent pressure zone, limiting rent increases to 2pc or the rate of inflation, whichever is lower. However, Ms Grogan said it is frustrating that this will not allow for rents to be decreased during periods of deflation and that little is being done to address crippling affordability.She said it is worrying to hear some rents are already being increased in the interim. “Residential Tenancies Board data shows having rent pressure zones does make a difference, and that expansion is welcome, but if someone is going to reset the market rent, it will be difficult for tenants. We are hearing it already, people whose rent is being increased by serious amounts and it is going to make homelessness worse.” she said.​Ms Grogan added she would like to see the Government focus more on preventing homelessness. While she welcomes the Government’s ambitious new housing plan to address issues around homelessness, she said a firm commitment to and dedicated resources aimed at preventing homelessness should have been outlined in the plan.“Unless there is a budget line put on the prevention framework, then how are local authorities going to be able to put money into prevention. It’s the morally right thing to do, to prevent people entering homelessness, but it makes sense economically too. The savings for the Exchequer in the longer term will be far greater than the cost of investing in prevention.”

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