Rents Hit A New High As Supply Falls

The property website Daft.ie’s latest rental report shows house rents have hit a new all-time-high.

The report shows that over the last year, rents have increased by 11.9% and the rent inflation is now at its highest level since the Daft Report was started in 2002.

The average rent nationwide now stands at €1,382, approximately €150 more than this time last year.

In Dublin, rents are up by 12% on average while areas closest to the city centre have seen greater increases in rents than more outlying suburbs.

Rents in Cork and Limerick cities have performed stronger than Dublin, increasing by around 14% over the past year.

Growth has been somewhat slower in Galway and Waterford cities, where rents have typically risen by about 6.5%.

In the Dublin commuter counties (Louth, Meath, Kildare and Wicklow), average rents are up 7.4%, while in South-East Leinster (Kilkenny, Wexford and Carlow), rents have increased 6.5%.

Although rents are increasing nationally, in certain market segments, rents are close to static.

Outside the major urban areas, rents have increased by no more than 3% on average during the past year.

Commenting on the report, Brian Fallon, Director, Daft.ie, said: "With many people no longer able to afford to buy their own place, people are now extending their leases and staying in rented accommodation. As a result, rents are being forced upwards as there is more competition for fewer places to rent."

The latest Daft Report also shows how a first time buyer could buy a three-bedroom property in Dublin for approximately €1,000 per month.

(SB/SP)