Parents buy homes for students as rents soar

Parents are buying properties for their college-going children as it is cheaper and easier than trying to find somewhere for them to rent.

Estate agents in Cork, Dublin, and Limerick have reported an increase in inquiries in the last 12 months, with many parents having no option but to buy.

Rents across the country have soared in the last few years. The Residential Tenancies Board’s latest rent index reported the average national rent exceeded €1,000 per month earlier this year.

In Cork city, the average rent is €1,177 per month, while those renting in Limerick pay €973 per month and in Dublin it is €1,691.

Property website Daft.ie reported record lows in the number of properties available to rent, and while many purpose-built student apartments are in the works, these will not be available in many areas for some time.

The CSO has reported that house price inflation is slowing in many areas and declining in parts of Dublin, with many able to pay significantly less monthly for a mortgage than for rent.

Michael Downey of ERA Downey-McCarthy in Cork City said that, over the summer, there was a notable increase in people from North and West Cork and Tipperary looking to buy property for their children.

“They will let their children live there rent-free or on a very modest rent, with friends or other lodgers paying rent too,” he said.

“In particular, it is very common in the Bishopstown, Glasheen, and College Rd areas near UCC and CIT.

“It is an entirely new phenomenon for us in the last 18 months and is down to the dearth of available rental properties and the lack of student apartments.”

Mr Downey said many of the houses are being bought with cash, a situation replicated in other parts of the country.

In Limerick, Michael O’Connor of REA O’Connor-Murphy said the firm has had a surge in enquiries from parents unable to find anywhere for students to rent.

Between the University of Limerick and Mary Immaculate College, Limerick has a student population of more than 23,000 and has seen very little activity in building new purpose-built student accommodation.

“Sales in the Castletroy area of Limerick increased by about 20%, and that was driven by the demand from parents,” he said.

They know that they can buy a property, let their child and their friends live there for the next four years, and that those properties will be in demand in three or four years’ time when they finish up.

Similar trends have emerged in Dublin, said Paul Grimes of REA Grimes, which has offices on Pembroke St Lower, Clontarf, and Skerries. He has received calls from across the country and abroad.