Rental costs up 10.6% in last year

Expensive

Conor McHugh

Reporter:

Conor McHugh

Email:

conor.mchugh@leinsterleader.ie

Rental costs up 10.6% in last year

Rent rises

Conor McHughconor@leinsterleader.ie

The latest report from Daft.ie has revealed that rents in Kildare increased by 10.6% in the last year.

And although the rate of increase figure is lower than the national average (11.2%), Kildare is the third most expensive county in the country to rent a house in, after Dublin and Wicklow.

In most counties on, for instance, the western side of the county, it is approximately half as expensive.

While there is a big jump year on year, it is also a considerable, 3.2% jump compared to the previous quarter.

Furthermore, rental costs are now almost 70% higher now than they were at their lowest point during the recession, in 2011.

“The figures from this report do not make for happy reading for tenants, those worried about homelessness and those whose focus is national competitiveness,” says Ronan Lyons, Assistant Professor of Economics at Trinity College Dublin and the author of the report for Daft.ie

In Kildare the average rent for a single bed apartment is €864, up 13.6% on the same time last year, a two bed house is €1,000, up 13.0%, a three bed house is €1,199 , up 12.2%, a four bed house is €1,304, up 12.1% and a five bed house is, on average, €1,328 per month, only slightly up, at 1.7%.

The Daft.ie report also revealed that one-bedroom apartments are exceptionally profitable for landlords, returning a 10.8% yield — in other words that the annual rent collected on them is work about 10.8% of the value of the property.

The availability of rental properties in Leinster has dropped 15% in the past year, which contributes to driving up the prices.

Mr Lyons believes strongly that rental caps are not the answer to the problem, for a number of reasons. Instead he believes the country needs to invest seriously in the housing market.

He says that almost 50,000 homes are needed on an annual basis to cater for the housing demand – both from private and government providers.

“More than 15,000 rental homes are needed each year,” he adds.

However, anybody who feels they are priced out of the market in Kildare could do worse than looking to Sligo, where average rents are €665 a month, to Mayo where they are €632 per month or to Donegal, where they are €592 — but not to either Wicklow, Louth or Meath where they are all north of €1,000.