Average rent in co meath now over 700

The average rent in County Meath stood at €708 at the end of the third quarter, according to data published by the Private Residential Tenancies Board (PRTB).

This is up 4.7 per cent, or €32, when compared to the prevailing average rent in the third quarter of 2013 when the amount was €676.

At a national level, rents for houses were 4.3 per cent higher while apartment rents were 7.3 per cent higher than in the same quarter of 2013.

The findings are drawn from the PRTB's Average Rent Dataset, which is part of the Rent Index compiled by the Economic and Social Research Institute (ESRI).

The increase in rental prices is due in part to an increase in demand for suitable rental properties.

With the recently-proposed mortgage deposit rate of 20 per cent rule, it is likely that rental prices will increase further as first-time buyers, in particular, find it harder to purchase property.

According to Meath East Fine Gael TD Helen McEntee, the Central Bank's mortgage deposit proposals will make it 'impossible' for many young couples and first-time buyers to raise the required downpayment.

'Undoubtedly, we need to learn from mistakes of the past but this cannot be done to the detriment of first-time buyers,' she said. 'At all costs, a further 'property bubble' must be prevented but I believe there are other ways of doing this.'

Deputy McEntee has called on the Central Bank and other stakeholders to consider alternatives to the proposed 20 per cent mortgage deposit rule in the best interests of those trying to get onto the property ladder.

'Currently, most first-time buyers are paying rent so they have a track record of making timely payments to landlords,' she said. 'Alongside paying rent, they are striving to save towards a deposit for their own home.'

She added: 'Average house prices are currently ranging from €250,000 to €450,000. To take an average of those two figures at €350,000, I believe it would be impossible for most young people to save a €70,000 deposit whilst renting.'

According to Deputy McEntee, one bank recently stated that 70 per cent of its mortgage applicants would not be successful if the 20 per cent plan was brought into effect. 'This is too high a figure to ignore and the system cannot leave first-time buyers out in the cold,' she said.

The Fine Gael TD maintained that single parties and young couples are being discriminated against under the new proposals. 'As a 28 year-old who would like to buy in the near future, I feel that this rule would most definitely leave me at a disadvantage and prevent me from buying my first home for years to come,' Ms McEntee added.

She has instead called for financial institutions to lend based on the prospective buyer's capacity to pay. 'Banks need to look at income, savings, housing costs and so forth.

'Mortgages should not exceed one-third of a household's disposable income and I think if the banks take all of the figures into account, they would be able to calculate the risks,' she said.

Deputy McEntee has also called for the 20 per cent deposit rule to be lowered to 10 per cent for first-time buyers.

'While 20 per cent is too high, borrowers do need to provide a certain amount up front. The 20 per cent rule could possible apply to buy-to-let or investment properties,' she added. 'This would give first-time buyers a fairer opportunity.'