Huge rise in rent of €90 per month in just one year
Students seeking accommodation for the new academic year are set to be hit by a huge jump in rents and a shortage of properties.
A new study says rents have shot up by €90 a month compared with a year ago. This was the steepest rise in rents since 2007.
And there are 40pc fewer properties available to rent now compared with last year, according to the latest rental report from property website Daft.ie.
Rents nationwide have jumped by 10pc to average of €915 a month, up from €825 a year ago.
Dublin rents are up 17pc to an average of €1,345. In the commuter counties around the capital rents are up 10pc, Daft says. Rents rose in every county, except Donegal.
There are now just 6,800 properties for rent across the country, down from 11,000 this month last year.
This is expected to cause a scramble for accommodation among the 50,000 third-level applicants who got an offer of a place in college yesterday.
President of the Students' Union at Trinity College Dublin Domhnall McGlacken-Byrne said the shortage of properties and the surging rents were a "source of alarm" for prospective tenants.
He said rising costs of rents would prevent some students from going to college.
The cost of renting in Dublin city centre was now up 28pc in the past three years.
"A 15pc increase for the student formerly paying €500 a month for his or her share of a Dublin city centre home corresponds to €75 that must be conjured from somewhere."
Economist at Trinity and author of the Daft report Ronan Lyons warned the student search for property will be a massive challenge.
"For students looking for accommodation, the 2014/2015 academic year is likely to prove one of the toughest for over a decade.
"The imbalance between supply and demand is particularly acute in Dublin" Dr Lyons said.
He advised students not to panic and said it was important that prospective tenants do their research ahead of making any decisions.
In the major cities Cork saw rents jump by 7.4pc to €866 in the past year.
In Galway the average rent is now €845, up 6.7pc. Limerick experienced a 6.3pc increase in the past year to €682. In Waterford the average rent is €608, up 2.8pc.
Meanwhile, homeowners were told they could earn a tax-free €10,000 a year if they rent out a room to a student.
Aidan Clifford of the Association of Chartered Certified Accountants said leasing a spare room at €500 a month over a nine months college term for five days a week could provide the same net income as €8,500 in gross salary for an average worker.