Cheaper to buy than to rent in Laois claim mortage brokers following big rent increase

Cheaper to buy than to rent in Laois claim mortage brokers following big rent increase
By Conor Ganly news@leinsterexpress.ie

It is now cheaper to buy a house than rent a home in Laois but many people are being frozen out as a result of lending restrictions and a shortage of houses, according to finnancial brokers.

So claimed Rachel McGovern, Chief Operations Officer at PIBA which represents 900 financial broker firms throughout Ireland. She was responding to the latest Daft.ie report which revealed thar rents in Laois were have risen 12% to an average of €690 per month.

Brokers claim that “a lost generation robbed of the opportunity to buy their own homes”

Ms McGovern cited Louth, Meath, Laois, Clare, Roscommon, Kilkenny and Wexford, as examples of areas in which it would still be cheaper to buy than rent , even if interest rates were to increase by 2pc.

“In very many cases it would still be cheaper to buy than rent. This is an absolute travesty for those in the 20s and 30s age cohort especially,” she said.

Rents rose nationwide by an average of 3.9% in the second quarter of 2016, according to the latest quarterly Rental Report by Daft.ie. This is the largest three-month increase in rents since early 2007 and means that, at €1,037 in the second quarter, the average monthly rent nationwide is at its highest level on record.

In Laois, rents were on average 12% higher in the second quarter of 2016 than a year previously. The average advertised rent is now €690, up 37% from their lowest point.