Survey shows 6.6% rise in rents

The cost of renting has risen by 6.6 per cent in the last 12 months, according to a survey published today.

The Daft.ie report says that as property prices fall and rents rise, it is now more attractive to buy a house than to rent in certain areas.

Average national monthly rent is now at an all time high of more than €1,400, the report says.

In Dublin, rents have increased by between 8 per cent and 13 per cent, compared with the same period last year, while Dublin's commuter towns have experienced a slight fall-off in rents - down 3 per cent on this time last year.

In Galway, rent inflation has dropped to 6 per cent, leaving the average rent just above €1,000. Average rents in Cork city stand at €1,166, with year-on-year inflation of 8.2 per cent.

For Limerick the rate remains static with an average rent of €889. A notable exception to the general trend is Waterford city, where the rate of inflation has increased over the past quarter and now stands at 7.3 per cent compared with the same period last year. It is also the most affordable city to live in with an average rent of €821.

Outside the main cities, growth in rents has cooled from about 6 per cent three months ago to less than 5 per cent. In southeast Leinster, Connacht and Ulster, inflation in rents is now below 3 per cent.

Daft.ie economist Ronan Lyons said: "Due to the increase in rents and fall in house prices, we are now seeing a situation where in certain areas it has become more attractive to buy, since the costs of renting and buying are almost equal.

"However this trend of increasing rents may not continue, as the rate of growth in rent has slowed to single digits and the supply of rental property has never been higher".