Rents rising in Dublin

By Mike Coleman

A survey conducted by property website Daft.ie has revealed that Dublin has the highest rent prices in Ireland.

The average rent per month in Dublin stands at €1,057 compared to just €632 in Waterford.

The report also says that the supply of rental properties has declined and rents are increasing as a result. This is despite a continuing fall in house prices.

The survey shows that the number of rental properties on the market was at its lowest level in three-and-a-half years at the beginning of this year.

Ronan Lyons from Daft.ie has said, although rental prices in rural areas are continuing to fall, they are increasing in urban areas.

“The biggest difference in the rental market at the moment is that between Dublin and Cork in particular; and the urban market in general on the one hand and the smaller markets outside the cities on the other hand.”

“What we are seeing, particularly in Dublin and Cork and to a lesser extent in the other cities, is stabilising rents. In fact, what we are seeing in Dublin and Cork is rents rising,” said Mr. Lyons.

The average national rents for 2011 were down by almost one per cent.  However, January 2012 saw a marginal 0.5 per cent rise on the same period as last year. This means rent prices are almost at the same level as December 2009.

Mr Lyons said a direct link between the reduction in the number of properties available for rent and the failure of rents to fall could not be made.

“It’s not really a case of cause and effect; the fall in the number of properties to rent has mainly been in Dublin and to some extent the other cities, but supply is much the same in the rest of the country.”

Minister for Social Protection Joan Burton said the failure of rent prices to fall in line with house prices supported her decision to cut social welfare rent supplement.

She said in most parts of the country, her department was paying more than 100 per cent of the average rent when it should be paying less as averages included “penthouses” and detached residences.

“Once these are excluded, and focusing on availability, there is scope for reductions for all categories, including Dublin,” concluded Ms Burton.