Ireland’s rental sector is regaining some stability, recording a significant slowdown in residential rent declines. Still, with a new academic year approaching, college students will continue to reap the benefits of rents that have fallen for three years in a row. See the following article from Property Wire for more on this.
Irish residential property rents across the country fell by less than 1% between April and June signaling an end to two years of declining rents, according to the latest report to be published.
In July, the average asking rent in the country was just over €835 per month, down 5% on the same time last year. Rents have fallen on average by 27% from their peak levels, the figures from property website Daft.ie show.
In the second quarter of the year, rents fell by between 1% and 3% in Dublin, Cork and Waterford city centers. But in Galway city and Limerick city, rents increased by up to 0.5%, while elsewhere in the country rents fell by 1% on average.
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‘The year on year fall in rents is now at its slowest pace in two years, suggesting that the rental market may be close to stabilizing. Nonetheless, the total stock of properties available to rent remains high, which means we are unlikely to see rents rising rapidly in the near future,’ said Ronan Lyons, Economist with Daft.ie.
Student rents are down for a third straight year, the report shows. Lyons said this will be welcome news for new and returning college students. This is the third year in a row that rents have been lower than the previous year. Compared with 2007, a typical student renting a two-bedroom property could expect to save between €1,500 and €4,000 over the course of the academic year.
But the cost of accommodation for students still varies significantly around the country, with the average cost for a double room in Dublin city center about twice the cost of renting in Athlone, Castlebar and Tralee.
‘When the first round of CAO offers is published on August 23, thousands of students and their parents will take to the streets to begin the hunt for accommodation. Competition to find quality accommodation, particularly in the large cities and towns, can be fierce,’ said Gary Redmond, President of the Union of Students in Ireland.
‘One simple piece of advice that I would recommend to all students is be proactive and start the search early, as it is my experience that the students out of traps early invariably get the choice of the best quality accommodation, closest to their college at an affordable price,’ he explained.
Redmond said to avoid difficulties at the end of the tenancy, USI recommends that all students use a USI Rent Book as proof of all payments and agree a schedule of the contents of the property.
The Daft Report is regarded as the definitive barometer of the Irish rental market and is being used by the Central Bank, mortgage institutions, financial analysts and the general public alike. Since its introduction at the start of 2006, the Daft.ie Asking Price Index is also being recognized as the earliest available reliable indicator of developments in house prices in Ireland.
This article has been republished from Property Wire. You can also view this article at Property Wire, an international real estate news site.