The cost of renting property continues to rise across the country, and at a quicker rate in Dublin due to the shrinking number of properties available, according to new figures.
The Daft.ie rental report for the third quarter of this year indicates that the average rent nationwide is now €824, while as of the start of this month, there were just 1,500 properties available to rent in Dublin — the lowest level recorded.
Rents in Munster were static but rose elsewhere, by 2.7% in Leinster and 0.9% in Connaught/Ulster.
However, year-on-year comparisons show that rental rates have been rising considerably over the past 12 months.
The average rent in Dublin between July and September was €1,152, an increase of 7.6% over the same period last year.
The year-on-year increase in Cork was 3.1%, bringing the average rental cost to €831, while in Galway the increase over the year was 3.6%, bringing the average rent there up to €816 a month.
In Limerick, the rental inflation rate was 1.8% compared with the third quarter of 2012, resulting in an average monthly rent of €662, while Waterford City was the only large urban area to experience a fall in average rent costs, down 1.6% over a 12-month period resulting in an average monthly rent of €601.
Rents have also been rising steadily in the Dublin commuter counties.
The year-on-year inc-rease in the average rent nationwide was 4.8% in the third quarter of 2013, up from 4.2% in the previous three months.
According to Ronan Lyons, economist at TCD and the author of the Daft report, the climbing rents in the capital are a direct result of a shortage of available properties.
“An acute shortage of rental accommodation has now emerged in Dublin, with fewer properties on the market now that at any point since records start in Jan 2006,” he said.
“Clearly, any Nama supply in the capital would be a welcome addition in easing tenant concerns. Elsewhere, markets look relatively balanced with oversupply from 2009 having corrected itself in many counties.”
The area with the most expensive average rental rates in the country is Dublin 4, where it costs an average of €1,073 for a one-bedroom property and an average of €1,995 per month for a three-bedroom property.
Dublin 2 and south Dublin follow closely behind in terms of high rent costs compared with the rest of the country. In Cork City the figures indicate a five bedroom house could be rented for an average cost of €1,368 a month.
The cheapest place to rent based on average monthly cost is Ulster, where a five bedroom property costs on average €620 a month.
The report also reveals that the third quarter of this year is the fifth consecutive quarterly rise in rents, while nationwide, there were 8,200 properties on the market on Nov 1 — the lowest level since Nov 2007.
© Irish Examiner Ltd. All rights reserved