Rental properties at over three year lows suggesting demand from first time buyers
Published 09/02/2012 | 11:17
THE NUMBER of rental properties available on the market has fallen to the lowest level in three and a half years, according to new figures from Daft.ie.
And the company’s economist Ronan Lyons said the drop and higher rents in certain parts of the country suggests there is an underlying demand from a build-up of first-time buyers.
Figures for the fourth quarter of last year, show the number of properties available to rent is down 5.7pc.
In Dublin, the number of properties available has fallen by over 1,000 in the past year.
Average rents nationwide stand at €821 per month, down 0.7pc in 2011.
While rents in Limerick, Galway and Waterford have fallen they were higher in Dublin and Cork.
Daft's economist Ronan Lyons said the fact that some areas - including certain areas of Dublin and in Cork - were seeing rent increases suggested an underlying demand from a build-up of first time buyers.
“What we are seeing in Dublin and Cork is nothing to do with rent supplement and suggests there is some pent-up demand from first–time buyers,” he said.
Minister for Social Protection Joan Burton said that previous quarterly reports have shown that national rent indices still appear to mask a rural/urban divide within the Irish rental market, with rural prices continuing to fall. These falls continue to be offset by increasing rents in urban areas.
''It is essential that rents are allowed to stabilise from a natural balance of supply and demand, rather than as a result of a price floor funded by the taxpayer,'' the Minister added.