Donegal housing rents on the rise 14.06.07

The cost of renting a home in Donegal has jumped significantly in the last year, a new survey shows. The report, by property website Daft.ie, shows that rent inflation rose nationally by nearly 12% since 2006. It shows that in Connacht and Ulster, including Donegal, it will now cost you an average of €487 a month to rent a one-bedroom property; €618 for a two-bed; €674 for a three-bed; €761 for a four-bed and €904 for a five-bed.

The nation's average monthly rental now stands at €1,382, an increase of approximately €150 since the same time last year, it reveals. The Daft Rental Report highlights that the supply of rental properties has dropped by about 20% in the 12 months. "The surge in the last two and half
years is in no small way due to strong demand arising from significantly increased immigration following EU expansion," according to the report. "Estimates vary, but this could be as much as 150,000 people, many of whom are seeking rented accommodation. Furthermore, the eight increases in interest rates since December 2005 have undoubtedly contributed to higher rents." Dublin 2 remains the most expensive location nationally for renting a two-bedroom property at €1,751 on average, with Dublin 4 at €1,694 and Dublin 18 at €1,602.A two-bedroom apartment in Cork city costs, on average, €1,028, compared to €921 in Galway, €790 in Limerick and €743 in Waterford. West and North County Dublin remain the most affordable locations in Dublin for a two or three-bedroom property, based on a typical joint application and mortgage interest relief. "The consensus among many economists is that house price inflation has been of the order of 300% over the last decade. "What is remarkable is that prior to 1998 – when the government took action on spiralling house prices – it was widely believed that rents were tracking runaway house prices. Now, rents have increased significantly while the housing market is showing signs of greater stability. However it cannot be too long before houses prices resume their inevitable upward trend," the report adds.
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