Search

04 Oct 2022

Gap between buyers and renters in Louth among highest in country

Only parts of Dublin saw bigger gap between rent and mortgage payments

Gap between buyers and renters in Louth among highest in country

Gap between buyers and renters in Louth among highest in country

The difference between the monthly mortgage repayment on a house in Louth and the rent for a house in Louth is among the highest in the country, with only areas in Dublin seeing a larger difference. According to analysis released by independent personal finance website moneysherpa.ie, the difference between average monthly mortgage repayments and rent for a house in Louth is €537.

Based on the most recent Daft.ie Rental Price Report, moneysherpa.ie analysed how rents now compare to the equivalent monthly mortgage payments on the same properties county by county. It showed that in Louth there was difference of €193,345 between the rent paid over 30 years versus the monthly repayments with a 30 year fixed rate mortgage.

The average monthly rent, house prices and monthly mortgage repayments over 30 years for a house in Louth area are as follows:

  • Average house price - €249,525
  • Average monthly rent - €1,396
  • Monthly mortgage - €859
  • Monthly difference - €537
  • Total 30 year difference - €193,345

The only areas in the country that saw a higher difference was South City Dublin, North County Dublin, North City Dublin,  City Centre Dublin and West County Dublin.

The moneysherpa.ie analysis takes the DAFT.ie rent data and compares it to the equivalent monthly mortgage repayment. Based on the 30 year fixed rate mortgage available from Avant Money for a home of the same value assuming a loan to value of 90%. 

moneysherpa.ie says that the combination of ‘trapped’ renters and a shortage of new rental supply has led to the spiraling rent inflation seen in the recent DAFT.ie report, with rents up 10.3% year on year on average across the country.

Commenting on the analysis Mark Coan of moneysherpa.ie said “This analysis raises some significant questions about the current Central Bank lending rules, which are in effect creating a chasm between those who can afford property and those that can not.”

“Those that can meet the current lending rules, will pay over €100,000 less to live in their home for 30 years and create an asset that they can pass onto the next generation. Those that can’t, even though they are paying a monthly rent that would be more than their mortgage repayments, are €100,000 worse off and will accumulate no assets after paying 30 years of rent.

“With fixed mortgage rates now available for 30 years there is less risk of current renters defaulting on their mortgage than on their rapidly rising rents. The Central Bank lending rules have to change and change soon to reflect that new reality. The idea that relaxing the rules will inflate housing costs further is misguided, housing cost inflation is due to lack of supply and is already here in the form of rising rents. Relaxing the rules will simply allow more people to own their own homes and help become financially secure”

To continue reading this article,
please subscribe and support local journalism!


Subscribing will allow you access to all of our premium content and archived articles.

Subscribe

To continue reading this article for FREE,
please kindly register and/or log in.


Registration is absolutely 100% FREE and will help us personalise your experience on our sites. You can also sign up to our carefully curated newsletter(s) to keep up to date with your latest local news!

Register / Login

Buy the e-paper of the Donegal Democrat, Donegal People's Press, Donegal Post and Inish Times here for instant access to Donegal's premier news titles.

Keep up with the latest news from Donegal with our daily newsletter featuring the most important stories of the day delivered to your inbox every evening at 5pm.