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Rents now rising for first time in two years

The tide has turned in the Irish rental market, with the costs rising for the first time in nearly two years.

Rents increased in January, figures from property website Daft.ie revealed.

The data shows that rents across the country rose by just over 1pc last month.

It was the first time the costs have gone up since they started to fall in March, 2008.

Peak

The national average rent now stands at €765 -- almost 25pc below peak levels in early 2008.

Daft.ie economist Ronan Lyons said: "It is too soon to say definitively whether rents have levelled off, but the January increase does seem to be broadly consistent around the country.

"The levelling off is most likely a result of a steady fall in the number of properties available."

The report is based on an analysis of all rental properties advertised on Daft.ie, and includes more than 130,000 advertised since January 2009.

Mr Lyons said the stock of property available to rent had fallen by more than 20pc over the past five months and now stood at 19,000.

Over the past two years, the stock of rental properties had surged from 6,000 to a peak of more than 23,000 in August last year.

Meanwhile, Daft said that, in 2009, Dublin rents fell by almost 19pc, while rents in Cork, Limerick and Waterford cities dropped by 16pc.

Rents continued to fall in the final three months of 2009, but at a slower rate than earlier in the year.

They fell by 3.9pc, compared to previous falls of between 4pc and 6pc.

The costs in some parts of the capital are now almost 30pc below their peak levels.

A survey in November last year showed rents across the country had plummeted to their lowest level in almost a decade.

Daft.ie recorded a 4pc fall in the previous three months, with the Dublin market hit harder than anywhere else.

Down

Rents fell by more than 18pc in the year to October 2009, with average monthly rent across the country down from more than €1,000 in 2008 to €771 last October.

Mr Lyons said at the time that the oversupply of property relative to demand had caused the fall in rental value.

"The amount of competition among landlords is what's driving rents down at the moment," he said in November.

comurphy@herald.ie


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