RENTS remained the same in Kilkenny during the third quarter of 2010, according to the latest report published by the property website, Daft.ie when compared with the same period the previous year.
The average rent from July to October of this year was 649 euro which remained the same when compared to the same period in 2009. This bucked national trends where apart from Dublin and the other major cities rental incomes dropped around the country.
According to the report the average rent in Kilkenny for a one-bedroomed property is 434 euro, 502 euro for a two-bedroomed property, 604 euro for a three-bedroomed property, 668 euro for a four-bedroomed property and 755 for a five-bedroomed property.
Commenting on the report, Ronan Lyons, Economist at Daft.ie, said: “Indications that rents are levelling off reflects a better balance between supply on the market and demand. The total number of properties sitting on the rental market around the country is down more than a quarter from a year ago. Indeed, in the cities, the fall is closer to a half,” he said.
Professor John Fitzgerald of ESRI said: “What the DAFT rental index shows is quite interesting. Having seen very substantial falls in 2008 and 2009 it would now appear that rents in Dublin have stabilised. This is apparent from the data for the last few months. It is clear from this that the supply of properties to rent is equal to the flow of new households being formed – the market is in a temporary equilibrium. This is happening in spite of the very significant outflow of people through emigration,” he said.
Professor Fitzgerald pointed out that although this situation could persist for some time with stable rents he added that at some point, with the supply of properties fixed, new household formation through new renters could begin to put pressure on the market.
He also stated that the recovery in the tradable sector of the economy is clearly underway, which will eventually drag the rest of the economy back to growth. “Then with employment rising, incomes stabilising and prospects becoming brighter, more people will seek rental accommodation. In turn, as the excess supply dwindles rents will begin to rise. Initially such a small rise in rents will not have much impact. However, when it becomes well established it will have a number of effects. It will cause some of those renting to assess whether, in the face of rising rents, house purchase might be attractive. The first sign that things are beginning to turn will be a move towards rising rents. This will predate any recovery in house prices and any new house building,” he added.