Renting a three-bed in Offaly is almost €400 more expensive than a mortgage

Paying rent in Offaly is almost €400 more expensive than a mortgage

PAYING rent on a three-bedroom home in Offaly is almost €400 more expensive per month than repaying a mortgage.

That's according to the Institute of Professional Auctioneers & Valuers (IPAV) who claim latest figures show than in virtually every area of the county it is “close to half the cost in many cases, to service a mortgage than paying rent on the same property -  if one could acquire a mortgage.”

Citing examples from the Daft.ie quarterly rent report for a three-bedroom home, paying a 3.25pc variable mortgage over 30 years with 85pc LTV the IPAV says in Offaly a mortgage would be €544 per month while rent is €941.

Even if the interest rate was to increase by 2pc the mortgage would still be lower at €690.

In Louth the respective figures are €666 (mortgage); €1,231(rent) and €845 (mortgage if there was a 2pc increase in the interest rate).

In Westmeath: €596; €1,012 and €756

In Longford: €378; €742 and €480

Pat Davitt, IPAV Chief Executive said:  “These figures illustrate the travesty of the situation for young people in particular, many of whom are now approaching middle age and who cannot acquire their own homes.

“The solutions thus far are clearly not working and something very different needs to be done to get more affordable homes built.  It requires a whole of Government approach, often talked about but not yet implemented.”

Mr Davitt said such solutions must include the entire planning process as well as the entire tax treatment of housing and investors in housing.

The Daft.ie report showed that rents had increased by 8pc in Offaly in the first quarter of 2021 compared to the same period last year, mirroring a national trend outside Dublin.

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