Fianna Fail Spokesperson on Business, Enterprise & Innovation and European Candidate for Ireland South Billy Kelleher has warned that unsustainable rent increases could jeopardise Ireland’s ability to compete for Foreign Direct Investment.

He was responding to the latest property index from Savills which forecasts a 17% increase in Dublin rents over the next three years.

Deputy Kelleher said, “The dramatic rise in rents, particularly in the larger cities like Dublin, Cork, Limerick and Waterford, over the past number of years is completely unsustainable and is pushing home ownership beyond the grip of an entire generation as they cannot afford to save for a deposit while paying out such prohibitively high rents.

“Not only are these excessive rents impacting on people already living here, they could act as a deterrent for multinational countries to locate offices in Ireland. The huge supply shortage is also exacerbating the situation. We need to see a greater emphasis on delivery, because while there is no silver bullet to the crisis, supply is most definitely the key to improving the situation for renters and prospective home owners.

“This in itself is problematic as labour shortages in the construction sector are having an impact on our ability to build houses and infrastructure.

“If we see a drop of in our competitiveness, we risk a knock-on impact on jobs and future growth. This government needs to concentrate on delivery rather than announcements. Unless we see more housing units built, and action taken on rents, we are in danger of losing our competitive edge and risking future investment”, concluded Deputy Kelleher.