Cost of renting up despite huge supply of properties
Published 10/05/2011 | 05:00
THE cost of renting a home rose in the first three months of the year despite a huge supply of housing in the rental market.
Rents rose by 0.5pc in the first three months of this year after being static all of last year, according to a survey by property website Daft.ie.
Rents in some parts of Dublin and Cork were up 3pc. But, despite this, rents were under pressure in other parts of the country due to a large supply of properties.
The average rent nationwide was €825, some 25pc below the peak in 2007 of €1,100.
Rents had been largely static since early 2010, but the stabilisation nationally hides different regional trends.
In Galway city, rents were largely stable.
In Waterford city, they were 6pc lower, while elsewhere in the country rents were 3pc to 4pc lower than this time last year.
The total number of properties available to rent nationwide has risen slightly but, at 17,000, it is well below its high in mid-2009 of almost 24,000.
Ronan Lyons, economist with Daft.ie, said the new figures showed rents had stopped falling. Rents had risen in areas where there was a shortage of rental properties.
"The latest figures confirm the first signs of stabilisation in rents which emerged from Dublin and Cork in the earlier part of 2010.
"However, while rents are rising in some urban centres, there is still significant overhang in other parts of the market which is pushing down rents.
"What we may be seeing is the emergence of a two-tier rental market, reflecting different levels of property oversupply around the country and, indeed, different labour market outlooks."