Ireland's property rents grow at fastest pace since 2002

Ireland's residential rents rose 11.7 percent year-on-year in the third quarter, the fastest pace since 2002, according to the latest figures from property website daft.ie on Tuesday.

The largest Irish property website said the rate of inflation in Dublin rents has increase from 8.2 percent in late 2014 to 12.1 percent between July and September, adding that outside Dublin, the average rate of inflation is 10.9 percent.

The average rent nationwide has risen by 45 percent since bottoming out in late 2011 and, having exceeded its 2008 peak earlier in 2016, is now 4.6 percent above the previous high.

In Dublin, rents are now an average of 9.3 percent above their previous peak while in Cork and Galway cities, rents are 8 percent and 14 percent above levels recorded eight years ago.

Daft.ie attributed the rent increase to a chronic shortage of housing throughout the country.

Tuesday's figures indicate that there were over 3,600 properties available to rent nationwide, the lowest figure for October since 2006. This compares to October 2014 when there were almost 6,000 properties listed nationwide.

"The shortage is particularly acute when it comes to apartments in the Dublin area," said Ronan Lyons, economist at the country's prestigious Trinity College Dublin.

He said the housing shortage will have a disastrous effect on social cohesion as well as on Irish competitiveness.

"Without addressing that, rents will continue to rise and further damage Irish competitiveness and Irish social cohesion," he added.

The Irish economist urged the local authorities to ensure adequate supply of new homes.

He said the local authorities should be required to set targets for particular types of property, including for apartments blocks suitable for older households and for purpose-built student accommodation if relevant. Endit