A NEW REPORT shows that the average rent in Dublin has increased – but the number of rental properties in the capital is down.
According to the latest report published by Ireland’s biggest property website, Daft.ie, the average rent has increased by 2.8 per cent since the same period last year. At the same time, the number of rental properties available in the capital is down 70 per cent from the peak in 2009.
The report also shows that the average rent nationwide is now €820, which is 0.8 per cent higher than a year previously.
Around Ireland, the performance of rents in the other major cities varied. Galway experienced a 2.2 per cent rise over the last twelve months, while Cork remaining largely stable (-0.4 per cent) and Limerick and Waterford experienced 2.2 per cent and 4.0 per cent falls respectively.
Rents outside the main cities rose 1 per cent in the third quarter of 2012, but remain 1.5 per cent lower than a year previously.
Dr Lorcan Sirr, Lecturer in Housing, DIT said that the numbers of individuals and families renting has “rocketed” in the last five years.
He added:
Across Ireland, about 29 per cent of all people now rent, with 18.5 per cent renting from the private sector. This is roughly the same level as in the mid-1950s. But what is more interesting is the speed of change: numbers renting in the private sector have increased by 86 per cent since 2006.
Sirr’s commentary on the report also shows that the Irish landlord market is an ‘amateur’ one, with the average one having between 1.6 – 2.1 properties, depending on which figures are used. He says that the rental market is changing, and changing rapidly, so both the Residential Tenancies At 2004 and landlords are going to have to adapt if they want to capture what the market has on offer.
Ronan Lyons, Economist at Daft.ie, said that the report shows continued falls in the available number of rental properties nationwide, but most significantly in Dublin.
“There are now fewer properties on the market than at any point since early 2007, when there were significantly fewer people renting,” he added.
After close to two years of static prices in the capital, this change in supply appears to be impacting rents in Dublin, which have risen just ahead of inflation over the last two years.
Year-on-year change in rents – major cities, Q3 2012
The full report is available from Daft.ie.
Disclosure: Daft.ie’s publisher Daft Media Ltd is a member of the Distilled Media Group. Journal Media Ltd has shareholders – Brian and Eamonn Fallon – in common with Distilled Media Group.
Read: Price index shows property prices have stabilised – Daft.ie>
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