Irish Housing Rents 2014: Rents are now more expensive than they were at the same stage last year in every county in Ireland, according to the latest quarterly Rental Report by Daft.ie covering the period July-September. Nationally, rents have risen by over 11% while over the last two years, the average rent nationwide has risen by almost €150, from €790 a month to €933. That national trend is being driven by Dublin, where rents are up an average of €300 a month since 2012 or 30% and less than 10% short of the 2007 bubble peak.
Dublin's annual inflation rate has slowed for the first time in five years, but prices have still risen by over 14% in the capital since the last three months of 2013.
In the other city centres, rents continue to climb. Waterford experienced an annual rise of 5%, Limerick 6%, Galway 7% and Cork 8%. Most of Dublin's neighbouring counties also continue to see double digit inflation with Meath witnessing growth of 11%, Wicklow 13% and Kildare 14%.
The number of properties available to rent has continued to plummet. On November 1st, there were fewer than 5,400 properties to rent nationwide, the lowest figure since May 2007.
Commenting on the report, Ronan Lyons, economist at TCD and author of the Daft Report, said: "In many ways, the lack of available properties to rent is more concerning than the high rental rates, although clearly the two phenomena are inextricably linked. The only silver lining is the fact that this quarter was the first time in five years that rent inflation in the capital eased somewhat. However, even if an easing in Dublin inflation continues and stops the affordability crisis from worsening, it does nothing to change the availability crisis."
Year-on-year change in rents – major cities, Q3 2014
Dublin: €1,372, up 16.6%
Cork: €897, up 7.9%
Galway: €875, up 7.2%
Limerick: €704, up 6.4%
Waterford: €628, up 4.5%
Ronan Lyons added:
In the capital, rents are now almost 30% above their lowest point in 2012 and less than 10% below their 2007 peaks. This is very damaging for Dublin’s competitiveness as a location for foreign direct investment.
The goal of housing policy should be to ensure that, regardless of whether it’s to rent or to buy, rural or urban, housing is abundant and affordable.
In many ways, the lack of choice is more concerning than the high rental rates, although clearly the two phenomena are inextricably linked. The second graph (see below) shows how many properties were listed to rent in the first nine months of each year, from 2011 to 2014, with 2011 set as the base. The number of properties listed to rent in Dublin has fallen from over 47,000 in the first nine months of 2011 to less than 27,000 in the same period this year.
Unlike the sales market, then, where rapidly rising prices have drawn out significant amounts of second-hand supply, rising rents have not seen any increase in listings. If anything, the opposite is the case. And the picture is even worse for building new homes."
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