Rents record their first annual increase since 2008

Rents nationwide were an average of 0.2% higher in the third quarter of 2011 than a year previously, according to the latest report published by the property website, Daft.ie. This marks the first time since early 2008 that rents rose in year on year terms. The average rent nationwide now stands at €825, a fall of 25% from the peak in 2007.

Rents fell slightly between June and September in Cork and Dublin but are higher than this time last year, particularly in Cork, where rents are up by over 6%. In Galway, Limerick and Waterford, rents rose slightly in the third quarter but are 1.5% lower than the same time last year. In Dublin’s commuter counties, rents have fallen by 1% over the past year, while elsewhere in the country, rents were typically static over the summer but are down 2-3% on the same time last year.

Offaly & West Leinster
In the Midlands counties of Laois, Westmeath, Offaly and Longford, rents fell by just 0.1% between June and September, and are now 2.1% lower than a year previously. The average rent in Offaly in the third quarter of 2011 was €585, a fall of €205 from the peak in 2007.

Commenting on the report, Ronan Lyons, Economist at Daft.ie, said: “It is significant that rents have now effectively been static for almost two years. However, differences between urban and rural areas persist, with greatest demand and smallest oversupply in Cork and Dublin in particular. The total stock of properties sitting on the rental market fell from 20,000 on July 1 to 16,000 on November 1. This is mainly due to a fall in properties in Dublin, where the stock has fallen by almost 60% in two years. Any reform of rent allowance may have an impact on rents, especially in cheaper locations. Thus, the outlook for 2012 looks like one of different trends in urban and rural markets.”

Year-on-year change in rents, Q3 2011
Dublin: €1,050, up 0.8%
Cork: €883, up 6.2%
Galway: €758, down 1.6%
Limerick: €692, down 1.5%
Waterford: €653, down 1.5%

The full report is available from www.daft.ie/report and includes a commentary by Philip O’Sullivan, Markets Correspondent for Business & Finance magazine, as well as an analysis of affordability and statistics on residential yields around the country.