first time buyers

Is it cheaper to rent or buy in Ireland?

The number of rental properties available nationwide has dropped to its lowest point since 2006, and the difference between renting and buying property in Ireland today is now being compared.

Average rents nationwide between January and March stood at just over €960 – that is 8.2% higher than at the same point last year.

Compared to their lowest point (2010 in Dublin and 2012 in the commuter counties), rents have now risen by one-third in the capital and a quarter in the surrounding areas.

In the other city centres, rents continue to rise but at a slightly slower pace. In Cork city, rents are 7.5% higher than a year previously, similar to the increase seen in Galway 7.4%. In Limerick, rents have risen by 6.8% in a year, while in Waterford city rental inflation was 5.6%.

The report also compared the cost of owning versus renting in different areas of Ireland. It found that a first time buyer on a 4.3% variable rate mortgage buying a two bed property in Dublin city centre would on average be paying €954 per month, while renting costs €1,360. In Cork the buying cost was put at €392 per month, with rents at €665.