Cost of renting hits 'all-time high' as supply at record low
- Author: Rogelio Becker May 10, 2017,
May 10, 2017, 0:26
Daft.ie's latest report warns that prices are soaring as supply plummets.
In Laois, rents were on average 16.6% higher in the first three months of 2017 than a year previously.
The latest quarterly Rental Price Report from daft.ie shows the average advertised rent in Donegal was €593 a month in the first quarter of 2017, up 14% from the same time past year. Rents in the capital are now 15.4% higher than their previous peak in early 2008 - an average of nearly €225 a month.
"Market rents in Dublin, for example, are now 66 per cent higher than at their lowest point".
"Tenants are under huge pressure, and those who are dependent on the rental system for their housing needs are looking at rents that are now, on average, €892 in Limerick city and €698 in the county".
In Cork, the cost of rents rose by 10.4pc to €1,107.
This is an increase of 4.6 per cent compared to the previous quarter.
The report shows that rents have risen by 13.4 per cent in the year to the end of March while the total number of properties available has fallen to its second-lowest level on record, which dates back to 2006. Rents in Galway saw a similar rate of increase, rising by 10.6% in a year. However, there are very few homes for sale, and a small number being built.
Author of the Daft.ie report and Trinity College lecturer Ronan Lyons said: "The rental market has, for over five years now, shown increasing signs of distress, with stronger demand but weaker supply each year".
In Dublin, there were just 1,074 properties available to rent in Dublin on May 1, the lowest figure recorded in the Daft series.
Commenting on the figures, Sinn Féin TD Peadar Tóibín said: "Meath Rents have increased by 16.7 per cent in the past year, making them the fastest growing rents in the country".
The solution is to introduce proper rent controls with rent increases linked to inflation.