Galway residents may soon find it more affordable to buy a house in the city rather than rent, with new figures showing the cost of rent has increased by over nine per cent in the last year.

According to new figures from property website Daft.ie, rent increases in the city over the last 12 months have been substantially higher than the national average of 6.6 per cent. The average monthly rent in Galway City now stands at €1,002 while inflation overall in the county is much lower at six per cent.

Rent of a one bedroom apartment in the city now carries a price tag of €694 per month, while a three bedroom dwelling costs €1,072. Demand for two bedroom apartments in the city has increased dramatically in the last year with a rise of 7.8 per cent.

However, spiralling rent costs in the city have meant that many of Galway's student population have been forced to live in sub-standard accommodation.

"This increase is very worrying. While in the past Galway was much more affordable than other cities such as Dublin, it is getting more and more expensive and many students simply cannot afford it. There are a lot of houses around the city that are in very very bad condition but students are being forced to live in them because they cannot afford anything else," said GMIT Welfare Officer Patrick Bonner.

Meanwhile, there was good news for homeowners with figures showing that despite a downturn in the property market, the average yield for a home in the city is 3.2 per cent ? an increase of 0.3 per cent on last year.

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