Rent rises average almost 7 per cent

Rents rose by an average of 6.7 per cent nationwide, in the year to June 2019, according to the latest quarterly Rental Report by Daft.ie.

This marks the lowest rate of rental inflation across the country since the final quarter of 2013.

housing houses

Rents rose by an average of 6.7 per cent nationwide

At €1,391, the average monthly rent nationwide during the second quarter of 2019 nonetheless marks the 13th consecutive quarter of record rents.

The average listed rent is now €361 per month higher than the previous peak in 2008 and almost €650 higher than the low seen in late 2011.

The slowdown in rental inflation is driven by Dublin, where annual inflation has fallen from a high of 13.4 per cent in mid-2018 to 4.5 per cent now.

There has been a cooling off in inflation in the other major cities, also, although the level of inflation is still higher than in Dublin.

“In Cork, rents are 7.9 per cent higher than a year ago, while in Galway city, rents are 9.1 per cent higher. In Limerick, rents have increased by 10.5 per cent in a year, similar to the increase seen in Waterford city (10 per cent ).

Outside the major cities, rental inflation varies from 6.2 per cent in Leinster to close to 12 per cent in both Munster and Connacht-Ulster.

Commenting on the report, Ronan Lyons, economist at Trinity College Dublin and author of the Daft Report, said: “The slowdown in rental inflation will be welcome news to tenants and policymakers, among others.

“It is more likely driven by limits to affordability than improved supply, however. Availability on the rental market remains at levels that were unprecedented prior to 2015.

For example, in the Dublin market, there were just 1,541 properties available to rent on August 1st. While that’s up from 1,121 two years ago, it’s well below the average of 4,700 for the preceding decade.

“Building new rental supply remains critical to fixing the rental market,” Lyons continued. “New figures in this report suggest that up to 25,000 new rental homes will be built over the coming few years.

“These will certainly help address the supply-demand imbalance. Stopping further inflation should be just the first target for policymakers, however.

“Bringing rents down to affordable levels must remain the ultimate goal.”

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