Donegal rental increase in line with national trend

Cost of renting increasing Donegal

By Michelle NicPhaidin

Reporter:

By Michelle NicPhaidin

Email:

michelle.nicphaidin@donegaldemocrat.com

Cost of renting increasing Donegal

The cost of renting a home in Donegal is now 6.8% higher than it was for the same period last year, according to a new rental report. 

Rents rose nationwide by an average of 11.7% in the year to September 2016, according to the latest quarterly rental report from daft.ie. 

This is the largest annual increase in rents ever recorded in the report, which extends back to 2002. In addition, at €1,077 in the third quarter of the year, the average monthly rent nationwide is at a new all-time high.

In Donegal, rents were on average 6.8% higher in the third quarter of 2016 than a year previously. The average advertised rent is now €561, up 15% from their lowest point, the report states.

In Dublin, the annual rate of inflation in rents, in the year to September 2016, was 12.1%, its highest late since late 2014. Rents in the capital are now 9.3% higher than their previous peak in early 2008.

Commenting on the report, Ronan Lyons, economist at TCD and author of the Daft Report, said: "The figures from the third quarter of 2016 are worrying. They include a new all-time high for the average monthly rent nationwide, the highest rate of annual inflation on record, as well as the joint highest quarterly increase in rents. The increases stem from strong demand and very weak supply. In order to bring about more rental supply, policymakers urgently need to audit the cost of building homes in Ireland compared to other high-income countries."