NEWS

Rents rise in Donegal during final quarter of 2017

Increase in price of renting homes in Donegal

Michelle NicPhaidin

Reporter:

Michelle NicPhaidin

Email:

news@donegaldemocrat.com

Daft - rental price survey

Rents in Donegal were 3.9 per cent higher in the final three months of 2017, according to a recent survey by Daft.ie.

The average advertised rent is now €599, up 23 per cent from its lowest point. 

Nationwide rents rose by an average of 10.4 per cent in the year to December 2017. The average monthly rent nationwide during the final quarter of 2017 was €1,227, the seventh quarter in a row a new all-time high has been set.

The annual rate of inflation represents a slowdown in inflation from the rate recorded in 2016 (13.5%), which was the largest annual increase on record.

In Dublin, the increase in rents in the year to December 2017 was 10.9 per cent and rents in the capital are now 26 per cent, or almost €380 a month, €4,500 a year, higher than their previous peak in 2008.

Most of the other major cities saw similar changes in rents during 2017. In Galway and Waterford cities, rents rose by a little over 12 per cent during the year, while in Limerick city, rents rose by 14.8 per cent.

In Cork, the increase in rents was 7.7 per cent, while outside the five main cities, rents rose by 9.8 per cent.

There were 3,143 properties available to rent nationwide on February 1st. This is the lowest number ever recorded for this time of year since the series started in 2006, and the figure marks a 15 per cent decrease on the same date a year previously.

In Dublin, there were fewer than 1,350 homes available to rent, compared to almost 6,700 on the same date in 2009.

Economist at Trinity College Dublin and author of the Daft Report, Ronán Lyons said: “2017 marks the fourth consecutive year of double-digit gains in rents nationwide. The underlying pressure for rising rents remains due to a chronic shortage of available rental accommodation, at a time of strong demand.

"In some segments in Dublin, rents have now doubled since 2010. Rents have been rising in the capital twice as long as they fell – and indeed twice as long as the last market upswing. With at least 40,000 new homes a year needed to meet underlying demand, but well below 20,000 homes built in 2017, it remains the priority for policymakers to bring construction costs down in line with affordable levels.”

Activity and demand in the rental market remains very high. Martin Clancy from Daft.ie said: “On average, over 1,000 property searches are now taking place every minute on Daft.ie. On a monthly basis, we are seeing over 2.5 million unique users logging onto the site."