Report finds big reduction in rental costs

Anyone considering rented accommodation when they head to college in September will be glad to hear that rents fell by almost 12% in the past year, according to the latest report published by the property website Daft.ie. Over the course of the year, the number of rental properties on the market more than doubled. There are now almost 21,000 properties available to rent, compared to just over 10,000 this time last year. The average rent nationally now stands at €885, down from €1,000 in the same period last year.

South County Dublin was the most affected area with the average rent falling more than 15% in the last 12 months. In Cork and Limerick rents dropped by almost 10%, while Galway and Waterford fell by 6% and 4% respectively. Outside the major cities, the average fall in rents for the same period was 8%.

Ronan Lyons, economist with Daft.ie, said: 'Many workers around the country could be expecting wage cuts of in the region of 10% this year, which means they will be looking for savings in their day-to-day expenditure. Falling rents and falling mortgage repayments will make a significant contribution to this.'

He continued: 'The latest figures from this report suggests that the average person renting could pay €1,600 less this year. Falling interest rates also mean that the average mortgage holder, on a €300,000 variable mortgage over 35 years, could save more than twice as much - over €3,400.'