Rents level off in second quarter of 2011

Rents across the country were static in the second quarter of 2011, according to the latest report published by the property website Daft.ie. In July, the average asking rent in the country was €823 per month, the same level as twelve months previously.
Rents in Dublin and Galway have remained static over the past twelve months, while they rose strongly in Cork city – by an average of 4.7%. In Waterford and Limerick cities, rents are about 2% lower than last year. Elsewhere in the country, rents are down by 2.6% on average. Commenting on the report, Ronan Lyons, Economist with Daft.ie said, “Recent years have shown a strong relationship between the number of properties available on the market and trends in rents. The total number of properties available to rent at any one time in Ireland’s five major cities rose from 6,000 on May 1st to 8,000 at the start of August. The increase was pronounced in Dublin and unsurprisingly, having risen strongly for six months, Dublin rents stabilised in the last quarter.”
With Leaving Certificate results out this week, the latest figures will make interesting reading for new and returning college students. Having fallen for three years in a row between 2007 and 2010, rents are on average unchanged compared a year ago. Compared with 2008, students renting a two-bedroom property could expect to save over the course of the academic year €1,500 in many parts of the country and up to €4,000 in some parts of Dublin.
However, not all areas have seen static rents and the cost of accommodation for students still varies significantly around the country. Rents for double-rooms have fallen by 2-3% in many parts of the country, but rose sharply in Limerick city and in Letterkenny. The average cost for a double room in Dublin city centre is about twice the cost of renting in towns like Castlebar and Letterkenny.
Universities and IoTs, by average cost of double room

Offaly & West Leinster In the Midlands counties of Laois, Westmeath, Offaly and Longford, rents were largely static between April and July, falling just 0.1%, compared to a fall of 1.3% in the first three months of the year. The average rent in Offaly in the first quarter of 2011 was €595, a fall of €195 from the peak in 2007.
The full report is available from http://www.daft.ie/report/rachel-breslin and includes a commentary by Rachel Breslin, Welfare Officer of the UCD Students Union and a table of average rents near each of the universities and IoTs, as well as an analysis of affordability and statistics on residential yields around the country.