Rents down by one sixth

Monthly rents have fallen by just under €200 in the past year, it emerged today.

New figures revealed the national average being paid out to landlords stands at just over €800 per month, down a sixth on the past 12 months.

The latest report published by property website Daft.ie showed a 5% drop in the past three months, with a 7% fall in Dublin.

Ronan Lyons, economist with Daft.ie, said the total number of properties available to rent has risen steadily over the last two years.

"In the month of July alone, there were a record 24,000 properties available to rent, about three times the seasonal average," said Mr Lyons.

"As landlords compete for tenants in a market where supply exceeds demand, these falls in rents are to be expected."

The Daft rental report is based on an analysis of all rental properties advertised on Daft.ie since January 2002, including over 130,000 so far this year.

The study revealed rents have now been falling month on month for almost a year and a half, with a 20% drop in Cork and from over €1,300 to €1,000 in Dublin.

The biggest fall was in south Co Dublin where rents are on average 23% below their peak, compared to a 14% fall in Connacht and 10% drop in Kerry and Donegal.

With thousands of teenagers securing college places with the CAO points out yesterday, Mr Lyons said the latest trends will be welcome news for new and returning college students.

The cost of a double room in towns with Institutes of Technology range from €231 a month in Letterkenny to €543 a month in Dublin.

"As students start their hunt for accommodation this week, the typical student renting a double room in Dublin city centre can expect to save about €1,000 over the course of the coming academic year, compared to last year," continued Mr Lyons.

"This is about the same amount that two students renting a two-bedroom property in Galway or Limerick might expect to save."

Elsewhere, Mr Lyons said there may be signs of some good news for landlords in the latest figures.

On August 1, for the first time since 2007, the number of properties available to rent fell slightly.

"High demand for rental properties over the summer months has been reducing the total number of properties available to rent, which may ease downward pressure on rents," he added.

"If that blip become a trend that continues for the next year, and if Ireland's output and unemployment pictures look to have turned a corner by early 2010, rents may stabilise, particularly in Ireland's more expensive markets, where sentiment is paramount."
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