Irish Rents Rising at Fastest Paste in Over a Decade
Rents are rising in double digits and are now higher than at the height of the Celtic Tiger, with “disastrous” consequences for renters, communities, and the country’s competitiveness.
While Ireland was left with a surplus of houses after a 2008 property crash, supply has since failed to come anywhere close to matching demand in the fast-recovering economy, sending rents back above their "Celtic Tiger" peak.
According to the Daft Rental Report Q3 2016 : the average rent nationwide rose by almost 4% in the third quarter, equalling the largest three-month increase seen in the second quarter of the year. Combined with other recent increases, it means that the annual rate of rental inflation in Ireland is now 11.7%, the highest recorded by the Daft.ie Report since its series start in 2002.
This is the highest yearly increase since Daft began its quarterly rent reports 14 years ago. Rent is now at all-time high, with the average renter forking out €1,077 per month in July, August and September.
In Dublin, the average rent for a three-bed semi is €1,800 a month, nearly 10% higher than the previous Celtic Tiger peak.
Nationally, rents are 5% higher than they were in 2008. In Cork City, they have risen 8%, while in Limerick, they are 2% higher. In Waterford, they remain 6% lower.In Dublin, they are 9.3% higher than in the 2008 peak.
Ronan Lyons, the report’s author and economist at Trinity College Dublin, said:
“This is having a disastrous effect on social cohesion as well as on Irish competitiveness.”
He said the Government needs to look at why it costs so much more to build a house in this country than elsewhere.
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