RENTS RISE OF 1% SEEN IN JANUARY - DAFT.IE - A new report shows that rents rose in January for the first time in two years. Property website Daft.ie says average rents moved up by just over 1% in the month, bringing the national average to €765 a month - 25% below the peak levels of early 2008. Daft says it is too early to tell if rents had levelled off, but the increase in January was broadly consistent throughout the country due to a steady fall in the number of properties available to rent. Daft says the stock of property available to rent has fallen by more than 20% over the past five months, and now stands at 19,000. Over the past two years, the stock of rental properties had surged from 6,000 to a peak of more than 23,000 in August last year. Meanwhile, Daft said that in 2009, Dublin rents fell by almost 19%, while rents in Cork, Limerick and Waterford cities dropped by 16%.
Daft.ie's economist Ronan Lyons says last month's rent rises means - in the broader scheme of things - that tenants are still looking at very affordable rents compared to what they would have been paying 24 months ago. He says that rents are about the same levels as they were in 2000 and points out that there are not too many things in the 'basket of goods' that can be applied to. He says that January's rise has actually come as a bit of a surprise. He says it is difficult to say whether the increases will continue. He points out that rents rose because the number of properties available to rent fell by about 20% in the second half of 2009, with even more dramatic falls in some of the city areas. He says that if there is supply waiting in the wings, if developers are sitting on properties looking at NAMA later in the year and if they decide that now is a good time to rent, then rents will fall again.
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BEWLEY'S EXTENDS ETHICAL TRADING DEALS IN NICARAGUA - Bewley's is increasing the amount of coffee it buys from a Nicaraguan farmer's co-op by 65%, and has guaranteed the Soppexcca Farmers another $1m worth of business. This is on top of its $1.5m three year deal that has been going for a few years. Details of the deal will be announced later this morning by the Minister of State for Overseas Development, Peter Power.
Nicaraguan Ambassador Ricardo Alvarado says the extended deal will help provide schools and improved housing for his country's coffee growers. He says the deal will also help generate more business between Ireland and Nicaragua.
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MORNING BRIEFS - Barclays full-year profits increased by 92% to £11.6 billion sterling in 2009, boosted by the sale of its BGI fund management arm last year. The bank, which did not take any direct state help during the financial crisis, also saw the level of its total bonus payouts rise. But it said that chief executive John Varley and president Bob Diamond had turned down bonuses for the second consecutive year.
*** The euro has edged up, but remains near nine-month lows against the dollar as the outcome of a meeting of euro zone finance ministers failed to instil confidence that Greece's debt problems will be resolved quickly. Greece has been given 30 days to show its deficit plans are on track, or additional measures will be requested.
*** The euro is trading at $1.3639 cents and 86.89 pence sterling this morning on currency markets.
