Report says rents at all-time high

A report has warned that soaring rents are proving to be disastrous for the country.

A report by the property website says that average rents across the country over the past year has shot up around 12%. According to Trinity College Dublin economist and author of the property website, Ronan Lyons, the reckless rise in rentals has created a serious situation. Lyons said, “The figures from the third quarter of 2016 are worrying”.

“They include a new all-time high for the average monthly rent nationwide, the highest rate of annual inflation on record, as well as the joint highest quarterly increase in rents.”

He said the increases are having a “disastrous effect” on communities as well as the country’s economic outlook.

Rentals in Dublin and outside the capital as well as other areas of the country are seeing jumps by more than 10% a year.

Increase in rents

The latest analysis shows average Dublin rents are at 1,580 euro, more than 12% compared with last year,; Cork at 1,087 euro, up over 14%; and Galway at 962 euro, up almost 11%. Average rents in Limerick are at 862 euro, up over 13%; whereas Waterford saw the average rents rose to 735 euro – an increase by 11%.

Average rate in the rest of the country is 764 euro, up almost 11%.

Sharp rise in demand vs. low availability

The sharp rises in rents are due to surge in demand for rental properties against only few available homes, with the last month had only 3,600 listed properties available to rent, which was 6,000 during the same time two years back. Mr Lyons blamed part of the problem in Ireland on a number of “non-families” living in family homes.

He said that the government should be working to “tempt” these tenants into other accommodation, to promote homes suitable for older people and students, and to cutting exorbitant constructions costs, particularly for apartment buildings.

“This latest report highlights that, without addressing that, rents will continue to rise and further damage Irish competitiveness and Irish social cohesion”, added Lyons.

Disclaimer: The opinions expressed by our writers are their own and do not represent the views of Invest for Property. The information provided on Invest for Property is intended for informational purposes only. Invest for Property is not liable for any financial losses incurred. Conduct your own research by contacting financial experts before making any investment decisions.

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