Rent inflation slows to lowest level in six years
The rate of rental inflation dropped to its lowest level in six years in the third quarter of this year, the latest report from property website Daft.ie shows.
Daft said that the average rent across the country rose by 5.2% – the smallest increase since the second quarter of 2013.
However the average monthly rent in the country in the third quarter of this year hit €1,403 – the 14th consecutive quarter of record rents.
Daft said the average listed rent is now €373 per month higher than the previous peak in 2008 and almost €660 higher than the low seen in late 2011.
It noted that the increase in rents in Dublin in the year to September was 3.9%, the 33rd consecutive quarter where rents have risen but the slowest increase since the middle of 2012.
Inflation has also slowed in Leinster, with rents 4.3% higher than a year ago, down from inflation of 10% or more between 2014 and 2018.
Meanwhile, rents in Cork city were up 5.5% to €1,372, while they increased by 5.9% to €1,299 in Galway. Rents in Limerick grew by 5.9% to €1,219 while they rose by 5.5% to €1,007 in Waterford city.
But elsewhere in the country, rents continued to rise at faster rates and Daft reported increases of 10.1% in Munster and 8.2% in Connacht-Ulster in the year to September.
The property website also said that the number of homes available to rent nationwide rose by 10% on the same date a year ago.
This marks the eleventh time in twelve months that rental availability nationally has improved, though this is from record lows.
It added that despite the increase there is just 3,500 rental homes available for the whole country.
Ronan Lyons, economist at Trinity College Dublin and author of today’s report, said that over the last decade, Ireland’s rental market has experienced a persistent and worsening shortage.
Mr Lyons said that only in recent months have signs emerged of any improvement in this situation, with both improved availability and lower inflation.
“Nonetheless, rents continue to climb and from a base where they are already high compared to wages.” he said.
“As has been the case throughout the last ten years, there is no quick-fix regulatory solution for the sector. Rather, fixing it will involve the construction of tens of thousands of new rental homes every year for the foreseeable future,” he added.
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