Meath rents up almost 11 on a year ago

It's a landlord’s market once again as rents in County Meath continue to soar on the back of a diminishing pool of suitable rental properties.

Rents in Meath were on average 10.9 per cent higher in the third quarter of 2014 than a year previously, according to figures released this week by the property website Daft.ie.

Ronan Lyons, author of the Daft Report, believes that the lack of available properties to rent is more concerning than the high rental rates, although the two are 'inextricably linked'.

Rents are now more expensive than they were at the same stage last year in every county in Ireland. Nationally, rents have risen by over 11 per cent in the space of 12 months with the national average rent now €933 compared to €842 a year earlier.

As the number of properties available to rent has continued to plummet, the dearth of suitable rental accommodation is a problem that needs to be tackled, according to Michael Cassidy, a financial broker based in Navan.

'Nobody has been purchasing investment property for the rental market in the last few years despite the large demand,' he said. 'Young people are looking for properties either for rent or to buy, but a lot of them can't find a property because of the lack of supply.'

Both renters and buyers are therefore operating in a more competitive market, which is driving prices upwards in both segments.

According to Mr Cassidy, it is unlikely that smaller investors, such as those with the potential to buy one or two investment properties, will be investing in the market any time soon.

He maintains that the combination of dwindling tax incentives and increasing costs associated with owning a property make it a less attractive investment opportunity.

This may be good news for those wishing to get their foot on the property ladder, however. 'A number of people who have invested in properties are waiting to see the prices increase,' he said. 'If they see the price coming in line with the loan outstanding, you may see some investors offloading their investment properties.'

Those who wish to move away from the increasingly costly rental market need to focus on two key things, according to Michael Cassidy. Firstly, potential buyers need to be able to demonstrate their repayment capacity. This can be demonstrated in terms of monthly rent payments or monthly savings deposits. Secondly, would-be homeowners need to be in employment for at least one year.

However, Mr Cassidy has experienced bidding wars in recent months that have inflated the price of an individual property by €20,000.

While the rental market in Meath is becoming increasingly costly, buyers need to ensure that they are getting value at a purchase price they can afford to service for 20 years or more.