City rents rise by almost 10%

Pictured at the recent European valuation summit in Dublin to debate the merits of a new system of valuing property that doesn’t currently exist in Ireland but is popular in some European countries were Margaret and John Fogarty, Remax, Waterford with Eamon O’Flaherty (centre), President of the Institute of Professional Auctioneers & Valuers.

Pictured at the recent European valuation summit in Dublin to debate the merits of a new system of valuing property that doesn’t currently exist in Ireland but is popular in some European countries were Margaret and John Fogarty, Remax, Waterford with Eamon O’Flaherty (centre), President of the Institute of Professional Auctioneers & Valuers.


Rents rose nationwide by an average of 3.2% in the third quarter of 2015, the largest three-month increase since early 2007, according to the latest quarterly Rental Report by Daft.ie. The increase in rents comes ahead of Government measures to limit increases in rents. The national average rent between July and September was €964, compared to €882 a year previously.
Annual inflation in rents now stands at 9.3% nationwide and, for the second quarter in a row, is being driven by trends outside the capital. In Dublin, annual inflation in rents is 8.9%, down from 15% in mid-2014, whereas outside Dublin inflation in rents stands at 9.7%, up from 5% in mid-2014.
In Munster, rents rose by an average of 6.8% in the year to September 2015, compared to a rise of 4.2% a year previously.
Here in Waterford city, rents have risen by 9.6% in the last year and the average rent is now €661.
Across the county, rents were on average 7.1% higher in the third quarter of 2015 than a year previously. The average advertised rent is now €633, up 11% from their lowest point in 2013.
Inflation in Cork City is 13.5% higher than a year ago and 12.2% higher in Galway City. In Limerick City inflation stands at 11.4%.
Supply on the market is at its tightest on record, with just over 4,000 properties available to rent nationwide on November 1st 2015. Figures for supply nationally are available from the start of 2006 and the previous low was in early 2007 (4,300). While supply has been very tight in Dublin since early 2013, other parts of the country are now seeing dramatic falls. There were 40% fewer homes to rent in Munster on November 1st 2015 than a year previously (650 homes, compared to 1,100).
According to Daft report author and TCD economist Ronan Lyons: “The latest Rental Report suggests that the market reacted to talk of rental controls, with for example rents rising by 7% in Cork in three months and by 6% in Galway, by far the largest three-month increases seen in a series that extends back 10 years.
“Ultimately, while controls on rent increases may help those at risk of becoming homeless, they do nothing to help those already homeless. The much more pressing issue that needs to be addressed is the lack of supply, which ultimately depends on the cost of construction.”

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