Renters paying twice as much as mortgage holders
In some Dublin areas it has become twice as expensive to rent as it is to buy, and renters are moving back in with their parents in increasing numbers in a move to try get on the property ladder.
Average rents across Ireland rose 2.8pc in the last quarter and are now €1,017.15.
In comparison, a 25 year mortgage on the average three bed semi detached house costing €211,843 works out at €969 per month at current rates, according to a survey carried out by the national Real Estate Alliance Group.
According to the Irish Independent, estate agents are finding that in some circumstances house buyers can halve what they are paying in rent if they buy a property in the area.
"Rents have gone through the roof, fuelled by an all-time low of supply of suitable properties, with many prospective buyers trying to escape rents of €2,000 a month in Dublin," John Cumisky, from REA Cumisky said.
Yesterday the Irish Independent revealed that the price of an average semi-detached home is rising by an average of €500 per week.
Overall, the average house price across the country has risen by 11.2pc over the past 12 months.
According to Anthony McGee of REA McGee it is increasingly difficult for first-time buyers to save deposits and purchases homes due to a combination of high rents and childcare costs,
"There are lots of instances where we are seeing people moving home to parents to save deposits. Even though the rents they are paying are in excess of a mortgage on the same property, they can’t seem to attain a mortgage due to their inability to raise money for a deposit," Mr McGee told the Irish Independent.