herald

Sunday 20 August 2017

Property prices fall but city rents are soaring

For sale signs in Dublin
For sale signs in Dublin

Property prices may be falling but the cost of renting continues to soar, new figures show.

Private rental prices rose by nearly 10pc last year in Dublin.

Apartment rents in the city rose even more than houses, by nearly 11pc, up from an average of €1,051 to €1,166 - a hike of €115 a month.

Meanwhile, average house rents were up 7p - from €1,216 to €1,301, a rise of €85 a month, according to the Private Residential Tenancies Board's (PTRB) quarterly rent index which is compiled by the Economic and Social Research Institute.

In contrast, annual growth in rents for the market outside Dublin was more subdued, recording growth of nearly 4pc, compared to quarter four of 2013.

Anne Marie Caulfield, PTRB Director said that recent research it commissioned found that one third of tenants were not fully aware of their rights as a renter.

"For example, many tenants do not realise that they may be entitled to continue to rent the property they are currently living in for up to four years, even if they signed a shorter lease; they don't always know what the correct periods are for the termination of their tenancy; or that rent increases can only happen once during a 12 month period," she said.

Residential

It comes as the latest figures from the Central Statistics Office (CSO) show that in the month of February, residential property prices fell slightly nationwide.

Prices fell by 0.4pc nationwide - it was a fall for the second month in a row.

It is believed that new lending restrictions imposed by the Central Bank are one of the main reasons for the prices decreasing for two months in succession. The new rules came into force last month.

However, nationally, prices are still up nearly 15pc on an annual basis.

In Dublin, prices fell by 0.7pc in February, but they are still 21pc higher than in February last year.

The continued slowdown in the rate of house price growth seen in the CSO figures is as expected, according to property consultants Savills.

Dublin prices have been rising at double-digit rates since the middle of 2013.

fdillon@herald.ie

Promoted articles

Entertainment News