Laois rents higher than pre-Covid-19 level and double property crash rates

Conor Ganly

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Conor Ganly

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news@leinsterexpress.ie

Average rents in Louth exceed €1,000 for the first time

Average rents in Louth exceed €1,000 for the first time

Rents in Laois are higher than before Covid-19 struck and double what people had to pay to landlords during the worst of the property crash due to a chronic shortage of supply of homes the latest report from Daft.ie reveals

The Daft Rental Report quarterly reports are viewed as reliable measures of what renters can expect to pay. The quarer thre 2020 report covers the period from between June and September.

It found that in in Leinster's midlands counties rebounded in the third quarter of 2020 rising 3.2% 

Daft.ie reports that in Laois, rents were on average 5.1% higher in the third quarter of this year than for the same time in 2019 before Covid-19 when the economy was buoyant. Despite the most densely populated parts of Laois being in so-called Rent Pressure Zones which should control rent increases, the average listed month rent is now €1030, up 104% from its lowest point.

The Daft.ie website shows that there are just 21 homes to rent in Laois at present.

The national average listed rent rose by 1.2% between June and September.

Other notables for Laois renters in the Daft Rental Report Q3 2020 are as follows:

One bed apartment rent is €759 up 6.7%

Two-bed house €850 up 4.5%

Three-bed house €974 up 3.1%

Four-bed house €1,097 up 6.5%

Five-bed house €1,263 up 15.1%

Laois has the second-highest average rent behind the midlands counties of Laois, Offaly, Longford and Westmeath. 

Renters in Laois and other counties would pay a lot less in mortgage repayments for all types of homes.

Landlords in Laois are making a return of up to 11% on their property investment. Yields are highest for apartments and small family homes.

Daft says the rises are offsets a fall of 1.4% in the second quarter, following the outbreak of Covid-19 and means that the average monthly rent nationwide in the third quarter of 2020 was €1,419, up 1.2% on the same period in 2019 and 91% higher than its lowest point in late 2011.

The report says there was a noticeable difference in trends in Dublin and elsewhere in the country.

In Dublin, it says rents were largely stable between June and September, rising just 0.2%, and are 0.8% below the same period in 2019.

However, outside Dublin, rents rose by 2.9% in the third quarter and are now 3.3% higher than a year ago.

In Leinster (outside Dublin), rents vary from 4% higher in Wexford to 7% in Carlow. Rents are also higher than a year previously in Munster (up 2.8%) but are 1.5% lower in Connacht-Ulster.

The largest increases in rents has been in the main cities (excluding Dublin) and in the rest of Leinster. Rents in Cork, Galway and Waterford cities are roughly 5% higher than a year ago, while rents in Limerick are 3.4% up year-on-year.

Daft.ie say the average monthly rent nationwide in the third quarter of 2020 was €1,419, up 1.2% on the same period in 2019 and 91% higher than its lowest point in late 2011.

The number of properties available to buy on the market nationwide was almost 4,200 on November 1st, down 17% on the same date a year ago. As with prices, there is a difference between Dublin and the rest of the country.

In Dublin, the stock available to rent is almost twice the level seen a year ago (2,700 vs. 1,400) while outside Dublin, rental stock is down one third and, at just 1,435 on November 1, was at its lowest level ever in a series that dates back 15 years to the start of 2006.

The report's author Ronan Lyons is economist at Trinity College Dublin.

“The figures in this latest Rental Report highlight the importance of supply in bringing about more affordable rents. In Dublin, supply has increased this year, largely due to the impact of Covid-19, and rents are down slightly.

"Elsewhere in the country, rental shortages continue to worsen and rents continue to rise to all-time highs. Even in Dublin, availability remains below 2006-2007 levels, a time of rental shortages, and at roughly one third the level of availability seen a decade ago. This underscores the importance of significant amounts of additional new rental supply – and not just in Dublin – in solving an issue that was central in the minds of voters earlier this year,” he said.