Rental hike in Donegal causes surge in investors in buy-to-let properties

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Increased rental returns have sparked a surge of interest by investors in buy-to-let properties in Donegal.

According to Letterkenny estate agent Sherry FitzGerald Rainey the growing imbalance in supply versus demand has caused rental returns for landlords to rise by almost 7% in the third quarter of this year.

The latest report from Daft.ie shows that the average rental rate advertised in Donegal is now €561, an increase of 15% from their lowest point in recent years.

Kiara Rainey, of Sherry FitzGerald Rainey said that; "First time buyers are in competition with investors for a limited number of properties and the lack of stock is driving rental returns through the roof in Letterkenny."

Letting agents are reporting that a 4 bedroom semi-detached home in good condition is renting for around €750 - €800 per month compared to €390 - €400 a couple of years ago, an increase of almost 400 euro.