Tuesday 27 September 2016

Rents hit all-time high as students begin hunt for accommodation

Published 23/08/2016 | 02:30

Rents have risen again and are now at their highest level on record. (Stock photo)
Rents have risen again and are now at their highest level on record. (Stock photo)

Rents have risen again and are now at their highest level on record.

  • Go To

And the number of properties available to rent is at an all-time low for the time of year, indicating that the rental crisis is intensifying.

Ronan Lyons of Daft.ie. Picture credit: Damien Eagers
Ronan Lyons of Daft.ie. Picture credit: Damien Eagers

The latest surge in the cost of rents comes as thousands of students are in a scramble to find college accommodation.

There was a rise of almost 4pc in rents in the second three months of this year, according to Daft.ie's rental report.

It was the largest three-month increase in rents since early 2007. It means that the average cost of renting a property across the country is now €1,037, the highest level since Daft.ie began tracking rent levels.

And the squeeze in the number of places to rent continues to hit people seeking somewhere to live.

There were just 3,600 properties available to rent nationwide at the start of this month. This is more than was available in May.

However, Daft.ie economist Ronan Lyons pointed out that there is usually a rise in listings in August, ahead of the academic year. The August figure is the lowest on record for the time of year.

Dublin rents shot up by 11pc in the year to June, the highest since the end of 2014. The average rent in Dublin is now €1,520.

Rents in the capital are now 5.2pc higher than their previous peak in early 2008.

Even the cost of renting a single room has jumped by almost 16pc to €588 in Dublin city centre.

Cork has had the highest rate of rent rises, with a surge of 18pc in the cost of renting a property in the past year. It was the fourth quarter in a row that Cork had the highest rate of inflation country-wide. Cork's average rent is €1,051.

Rents in Galway are 14pc higher than a year ago, and now average €932. And in Limerick, the past year has seen rents shoot up by 15.5pc, to €829.

In Waterford city, rents have risen by 13.3pc in the year to €712, while outside the major cities, the increase has been almost 10pc.

The average rent in the rest of the country is €736, Daft.ie said.

Dr Lyons, who is also an economics lecturer in Trinity College Dublin, warned that students will find the search for accommodation a tough one.

"While a large number of purpose-built student apartments are either being built or are planned, these will take time to come on stream and will only cater for those on higher incomes. The majority of students will face tough choices about where to study and where to live."

The Irish Property Owners' Association said "penal taxation" meant 40,000 landlords left the market between 2012 and 2015.

Irish Independent

Read More

Promoted articles

Editors Choice

Also in Business