Big shortage of homes sees rents rise 7pc
THE cost of renting a home in Dublin has jumped more than 7pc in the past year due to a shortage of properties, a new report has revealed.
On November 1, there were fewer than 1,500 homes to rent in the capital – a huge drop on the 6,700 available on the same date four years ago, according to research from property website Daft.ie.
The rising rents trend is not confined to Dublin, where property prices have also risen after years of freefall.
An annual rise of more than 12pc in Dublin house prices has led to warnings that the Government must act urgently to address the shortage of family homes in the capital and other cities to avoid another property bubble.
Economist Colm McCarthy said the increase in Dublin house prices was "worrying", coming in the absence of normal levels of mortgage credit.
South Co Dublin saw the biggest year-on-year rent rise, up 8.4pc. South Dublin city was second with 8.2pc.
North Dublin city followed with rents up 7.4pc. Dublin city centre saw a 7.1pc jump. North Co Dublin and west Co Dublin were up 6.5pc and 6.3pc.
Rents are also rising in other cities, except Waterford where they continue to fall at a rate of 1.6pc year-on-year.
In Cork and Galway, rents are up 3pc to 4pc, while in Limerick they have risen 2pc.
Outside the cities, rents rose by nearly 3pc in Leinster and almost 1pc in Connacht-Ulster, but were static in Munster.
The average rent nationwide is now €824 a month.