Advertisement

We need your help now

Support from readers like you keeps The Journal open.

You are visiting us because we have something you value. Independent, unbiased news that tells the truth. Advertising revenue goes some way to support our mission, but this year it has not been enough.

If you've seen value in our reporting, please contribute what you can, so we can continue to produce accurate and meaningful journalism. For everyone who needs it.

Graffiti in Dublin which complains about the high cost of rent on a new block of apartments. Alamy Stock Photo
renters

People who rent are now paying over €3,500 more per annum than mortgage holders

Renters in Dublin City Centre pay €8,359 more than mortgage holders.

RENTERS ARE PAYING €3,588 more per year than buyers who’ve taken a 90% loan to value mortgage on the same property.

Analysis on the latest Daft Rental Price Report, conducted by MoneySherpa, has identified renters in Dublin, Louth, Limerick, Meath, Longford, Kildare and Mayo are paying €4,000 more than buyers on average.

Dublin City Centre was the region with the highest difference between renters and buyers, with €8,359 more in rent paid each year. 

The only area in the country where rents are lower is South County Dublin, where rents are over €3,000 cheaper than mortgage repayments a year.

Ireland County Map Yearly average saving in mortgage payments versus rent per region. Monesysherpa.ie Monesysherpa.ie

While the latest Daft report found rents remained stable in Dublin, attributed to improved supply in the county, it found that all rental prices outside of the capital have increased in the last quarter.

When comparing current prices to rents during the same period last year, rents Dublin has still seen an yearly increase of 4.3%.

Ronan Lyons, author of the latest Daft rent report and an economics professor at Trinity College Dublin, said that a “significant pipeline” of new rental homes has emerged in Dublin.

He added that this “steady flow of homes, especially since 2022, has eased the very tight market conditions that had emerged after Covid-19 lockdowns”.

However, Mark Coan, founder of moneysherpa.ie, said that more and more renters are spending the same amount of money as homeowners and “have nothing to show for it”.

Coan said: “Those that can, pay over €100,000 less to live in their home over 30 years and then own a home that they can pass onto to their family if they wish. Those that can’t, are pay €100,000 more over 30 years and have nothing to show for it.”

He said the analysis raises some “significant questions about the current mortgage lending rules”, which he says are creating a chasm between those who can get a mortgage and those that can’t.

He added that the government, regulators and lenders need to develop “more creative solutions” in order to help “trapped” renters get on the property ladder.

Note: Journal Media Ltd has shareholders in common with Daft.ie publisher Distilled Media Group.

Readers like you are keeping these stories free for everyone...
A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation.

Your Voice
Readers Comments
88
This is YOUR comments community. Stay civil, stay constructive, stay on topic. Please familiarise yourself with our comments policy here before taking part.
Leave a Comment
    Submit a report
    Please help us understand how this comment violates our community guidelines.
    Thank you for the feedback
    Your feedback has been sent to our team for review.

    Leave a commentcancel