Rental Values Falling Across Ireland

Rents across the country have fallen by 0.6% on last year, according to a report from the property website, Daft.ie.

The fall shows a steadying of the market when compared to the shocking drop of 15% in 2009's rent prices. Daft.ie said the figures will come as no small relief to landlords and that house prices were also continuing to fall, albeit at a slower levels than in previous years.

The average rent nationwide now stands at €830 - 27% below the peak in 2007, while the total number of properties available to rent has also fallen from a high of over 23,000 in


the middle of 2009 to less than 16,000 at the start of February.

Lorcan Roche Kelly, an independent economic researcher, commenting on the latest Daft research on the Irish property market, said that the economies property market could be entering a new more European situation, where home ownership is less common.

"There is a chance - and this would need decades rather than years worth of data to prove - that the average Irish person may have fallen out of love with home ownership," Mr Kelly said.

Meanwhile, in other property news today, a leading housing charity has warned repossessions will soar this year without urgent Government action.

Respond! Housing Association demanded urgent changes to a mortgage welfare scheme as almost 100,000 homeowners struggle to meet repayments.

Spokeswoman Aoife Walsh said it was critical amendments be made to the Mortgage Interest Supplement (MIS) scheme, which gives short term support with interest repayments.

“The number of families struggling on a monthly basis is only set to increase during 2011 as incomes continue to fall and interest rates increase,” she said.

(DW/GK)