Students will reap benefits of 30pc drop in rents

THIS year's crop of college-bound students will have the benefit of one of the cheapest rental markets in recent history, a new survey reveals.

The dramatic decrease in rents of between 25 and 30pc since 2008 appears to have come to an end.

But there is still plenty of reasonably-priced accommodation for students preparing to start or return to college next month, according to the property website Daft.ie.

A survey of rents during the second quarter of the year found that rents dropped marginally between April and June.

The average decrease of less than 1pc points to a levelling-off in rent to an average asking price of about €835 per month for a two-bedroom flat - down 5pc over the same time last year.

Rents fell between 1 and 3pc in the major centres of Dublin, Cork and Waterford, while they actually increased in Galway and Limerick cities by up to half a percentage point.

Although rents now appear to have stabilised, they are a far cry from the prices charged at the height of the boom.

'The years 2001 and 2002 were the real horror days because a lot of new housing hadn't come on the market yet,' economist Ronan Lyons told the Irish Independent.

'Overall it's good news that students will enjoy the fall of rent compared to what they were in 2007.

'The year-on-year fall in rents is now at its slowest pace in two years, suggesting that the rental market may be close to stabilising. Nonetheless, the total stock of properties available to rent remains high, which means we are unlikely to see rents rising rapidly in the near future,' he added.

Plummet

The survey reveals student rents have continued to plummet for the third consecutive year. Compared with 2007, a typical student renting a two-bedroom property could expect to save between €1,500 and €4,000 over the course of the academic year, he added.

The cost of student accommodation varies significantly throughout the country. Students renting a double room in the Dublin city centre can expect to pay twice that of their counterparts in Athlone, Castlebar and Tralee.

But unlike during the height of the boom, students can be choosy and shop around for the best deal.

- Allison Bray

Irish Independent