Rent prices surged by 7pc in last months of 2013
RENT prices have surged – with a jump of 7.1pc recorded in the last months of 2013.
The average sum paid for accommodation increased in the final quarter of the year, according to the latest report from property website Daft.ie.
The 7.1pc rise in the average annual rent was up sharply from the 2.2pc increase recorded the previous year.
The average advertised rent nationwide is now €865 a month, compared to €790 two years ago.
The acceleration in rent inflation is due mainly to trends in Dublin, with rental inflation in the capital rising from 4.9pc to 11.2pc in the same period, according to the report.
The rent increases are related to very tight supply, with fewer than 1,500 properties available to rent in Dublin on February 1, compared to more than 6,700 on the same date five years previously.
Outside Dublin, rents in the other cities are rising but less rapidly with the exception of Waterford city, where rents continue to fall at a rate of 0.6pc a year-on-year.
In Cork and Galway cities, rental inflation is slightly above 4pc while in Limerick, the annual increase in rents has been 3.6pc.
Outside the cities, rents rose by 4.6pc in Leinster but were largely static in Munster and Connacht-Ulster.
Ronan Lyons, economist at TCD and author of the Daft Report, said: "The ongoing acute shortage of rental accommodation in Dublin continues to affect rents in the capital.
"With no sign of new supply coming on stream any time soon, the onus is now on the government to encourage construction in the capital.
"This could be best done with reform of land use and the planning process."