Average rents climb to €700 a month in Limerick city

Anne Sheridan

Reporter:

Anne Sheridan

Daft.ie's latest report shows that Limerick city rents have gone up six percent in one year. Below, economist Ronan Lyons, said the rent hike is worrying
THE average price to rent a property in Limerick has risen by 6.4% in the past year, according to the latest report by Daft.ie.

THE average price to rent a property in Limerick has risen by 6.4% in the past year, according to the latest report by Daft.ie.

The average rent in Limerick is now €704 per month, up from €662 a year ago, and representing a quarter on quarter change of just over three per cent.

Prices are continuing to climb due to a lack of supply, with the property website, Daft.ie, listing just 84 properties to rent in Limerick city at the current time.

The cost of renting in Limerick city has now risen more than 10% from its lowest point in 2013, yet remains €159 below its peak of 2007.

Prices in the rest of county Limerick have risen by almost three per cent and now stand at an average of €600 per month, up from €584 from the same period in 2013.

In Galway, the average rent is up to €875, while in Dublin rents are up by 16.6% to €1,372.

Across Munster, rents rose by an average of 4.2% in the year to September 2014, compared to static rents a year previously. Rents are now more expensive than they were at the same stage last year in every county in Ireland.

Nationally, rents have risen by over 11% in the space of twelve months with the national average rent now €933 compared to €842 a year previously.

In Dublin prices have risen by over 14% since the third quarter of 2013.

In the other city centres, rents continue to climb. Waterford experienced an annual rise of five per cent, Limerick six per cent and Galway seven per cent. Most of Dublin’s neighbouring counties also continue to see double digit inflation, with Meath witnessing growth of 11%, Wicklow 13% and Kildare 14%.

The number of properties available to rent has continued to plummet. On November 1, there were fewer than 5,400 properties to rent nationwide, the lowest figure since May 2007.

Ronan Lyons, economist at Trinity College Dublin and author of the Daft report, said in many ways, the lack of available properties to rent is more concerning than the high rental rates, although clearly the two phenomena are inextricably linked. “The only silver lining is the fact that this quarter was the first time in five years that rent inflation in the capital eased somewhat,” he said.

“However, even if an easing in Dublin inflation continues and stops the affordability crisis from worsening, it does nothing to change the availability crisis,” said Mr Lyons.