By Kate Heaney
DONEGAL has experienced the largest rent rise in the country in the past twelve months, far surpassing the rate of increase in the capital city.
At almost 21 per cent increase for the year, it is by far the highest rent increase in the country reflecting the crisis with up to 5,000 homes with defective building materials and a financial sector reluctant to loan for properties built in the county in the past 30 years.
Daft.ie produced its annual review on the rental market in the county last week and notes that in comparison to the post-Celtic Tiger low, it is largely the same in both markets: open-market rents in Dublin are 133 per cent higher, while rents in Donegal are 138 per cent higher.
The national average rent increase country-wide was 6.8 per cent.
The average rent for a three bed house in Donegal now stands at €1,154, a year-on-year increase of 20.2 per cent, according to daft.ie.
The cost of renting a single room in a house in the county has risen by a staggering 28 per cent to €510 while renting a double room now costs on average €513 here, an increase of 12 per cent.
Donegal rent increases for the year far outweigh those of neighbouring counties with Sligo seeing a 12.8 per cent, Leitrim 13 per cent, Cavan 15.6 per cent, Mayo 16 per cent and South County Dublin at just 2.5 per cent.
Rent on a one-bed apartment here is now on average €741 up 13.8 per cent year-on-year.
A two bed house to rent costs €904 up 19.6 per cent in the year. A three-bed house is renting at €1,040 up 20.6 per cent, a four-bed house is renting at €1,162 up 17.3 per cent and a five-bed home at the end of last year was costing €1,291 per month to rent, up a massive 20.9 per cent for the year.
The slow in rent increases in the capital is attributed by Daft.ie economist Ronan Lyons to the increased supply of rental properties.
“2023 shows what new rental supply can do to address rental market challenges. It remains to be seen whether that lesson will be learned,” Mr Lyons said.
Local letting agent Dermott McGettigan told the Donegal News yesterday that demand for rentals far outweighs supply here.
“We are seeing higher rents than even in the daft.ie survey, going as high as €1,500 for a three bed semi. You get people coming from cities outside this area looking to rent and they can afford the higher rents which then drives the price up for everyone.
“We get emails from all over the country from people desperate for rental accommodation. Sometimes when you reply, they have emailed so many they ask which part of the country we are in, Kerry or Donegal.
“Houses to rent are very scarce and it is very difficult for the ordinary person to get rental accommodation they can afford,” Mr McGettigan said.
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