The result is that rental accommodation has reached an all-time high, pushing rents downwards-falling 2.2% nationally in the past three months.

While overall the cost of accommodation for students is falling this year, there are significant differences in rents across the country.

Limerick students based in Dublin have to pay significantly more than those in college outside the capital.

A student at DCU staying near the college will pay an average of €525 per month for a double room, while in Cork, UCC students will pay less than €400.

Despite market conditions, Ronan Lyons, economist with Daft.ie, cautions students against waiting too late to pick their accommodation for the year.

“While the number of rental properties available this year has doubled, demand is still strong.  Students looking for good accommodation close to where they are studying need to act now as the best places will be taken quickly,” Mr Lyons said.

In the broader rental market, the increase in supply of rental properties is having its biggest impact on rents outside the big cities.

Rents in Munster, Connacht and Ulster are between 3% and 6% below their 2007 levels. Rents in the bigger cities are largely at the same level as this time last year, having risen in the second half of 2007 and fallen over the past number of months.

In Munster, outside the three cities, rents fell by 1.9% on average during the second quarter of 2008.

In Limerick city, rents fell just over 6% giving an average rent of €822. Looking ahead to the rest of 2008 and early 2009, Ronan Lyons sees current trends continuing.

“Overall, demand in the rental market seems to be holding up well, with the number of properties being rented rising from below 7,000 a month in late 2007 to above 10,000 in recent months. Nonetheless, with the number of rental properties coming on to the market increasing every month, rents look set to fall for the rest of the year and possibly into 2009,” Mr Lyons said.

Figures are calculated from econometric regressions using standard methods.

The full report, containing a special college accommodation overview, regional trends and commentary by Shane Kelly, President of USI is available online at www.daft.ie/report

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