The average monthly rental on homes in Waterford city now stands at €810, according to a report commissioned by property website Daft.ie
The statistics, collated over the last three months of 2007, show that rental income in Waterford rose by 5.9 per cent on the 2006 figure. Average nationwide rent currently stands at €1,388.
And while prices in lesser populated areas have “stagnated” according to the report, rental growth remains strong in Waterford city.
When it comes to first-time buyers, a three-bed house in the city, letting one double room, recorded an average monthly income of €597. The same sized home in Cork took in €930, while Limerick and Galway residences recouped €850 and €769 respectively.
However, the expected yield on such a property for investors dropped by 0.3 per cent on the 2006 figure.
The supply of properties across the country rose by 50 per cent in the final quarter of 2007, which contributed to the overall rental slowdown.
“The most likely explanation for the increase in the supply of properties to rent is that those who invested in property but had not sought a rental income are now doing so,” said Dan O’Brien of the Economist Intelligence Unit.
Said Daft.ie economist Ronan Lyons: “Rents have now stopped increasing for the first time since they started to rise in mid-2004, when Ireland opened its labour markets to the new EU members.
“The fact that rents have risen steadily since then shows the strong connection between the rental market and immigration. Overall demand still remains strong, particularly in urban areas, and we do not foresee any major weaknesses while immigration remains at current levels.”
City rents in third quarter of 2007
Dublin: €1,467 – up 8.7 per cent on 2006
Cork: €1,160 – up 7.7 per cent
Galway: €1,008 – up 6.6 per cent
Limerick: €914 – up 11.2 per cent
Waterford: €810 – up 5.9 per cent