As restraint replaces the frenzied purchasing of recent years, the flexibility of renting has its appeal. Rather than rushing into buying an overpriced dwelling, requiring a substantial deposit, some have remained renting, taking a 'waitand-see' approach. A small percentage are'lifers' with no plans to buy property.

While first-time buyers' share of the market is decreasing, investors are picking up the slack, says Rossa White, economist with Davy Stockbrokers. The surge in immigration and drop in affordability for first-time buyers have boosted the rental market, which has recovered following the 2002 to 2004 decline. For the typical first-time buyer, the debt service burden has risen from 19% to 25% of disposable income in one year, White said in a report published in October. Mirroring the US trend, the slowdown in property purchasing has pushed rents up, he says.

"The supply of rental properties is down this year. People are extending their leases because they are priced out of the property market and this year prices have gone up on average by 10%, " says Brian Fallon of Daft. ie. Having to fork out on average an extra 150 a month means renters are facing increased outgoings. However, the interest rate hikes of October and December will cancel out higher rents, says White in his report.

As higher interest rates start to hurt and speculation about budget changes in stamp duty abounds, a more cautious approach is evident in the marketplace, says Ken MacDonald, managing director of Hooke & MacDonald. However, he believes there is still a deep-rooted desire to own property. He maintains that even if the rental market here became more regulated, it wouldn't have much effect. "In Britain, the rental situation is much tighter and is very pro-tenant but there is still a high level of home-ownership, " he says.

"France and Germany are different.

They don't put the same emphasis on owning a property as the Irish. They may rent in the city and have a country pad."

However, the Irish mindset, he says, is shared by eastern Europeans, who are purchasing property here.

Despite our longstanding love affair with property, European-style renting is starting to enter the Irish market, Fallon says. More families are becoming longterm renters. Based on CSO figures, he estimates that 250,000 people live in rented accommodation in Dublin. The Kohns are one example of a family choosing to rent.

Caroline Kohn, her husband Andy and their 13-year-old twin daughters, Andrea and Danielle have rented for the past nine years and have no plans to buy. They have been at their present house in Stillorgan for the past six years. "Our landlord said the rent was negotiable as he wanted long-term tenants, " says Caroline. "We gave him a commitment of three years and he has kept it at a low rate ever since. We haven't had a rental increase in six years.

If we were to buy, it would have to be outside the city and we'd have to commute up to four hours a day.

"I am worried about having some security at this mid-life stage. I do realise the value in owning your own home. But the house we rent, a semi-detached with two good sized bedrooms and a box room, is not worth the 600,000 it would now sell for."

For those who take the rental route, the days of dingy bedsits are long gone. There is a vast choice of slick accommodation around the country.

The stock of rental accommodation has improved enormously, MacDonald agrees. "The quality is brilliant and if someone wants to rent a good-quality apartment in the city centre, they can do it for a realistic rent."

A lot of new high-spec developments are bringing a sense of style to renting, says Fallon. "Newer schemes such as those at Smithfield, the IFSC, the Digital Hub and Parnell Square are very large and are designed for long-term living."

The perception remains that rent is 'dead' money, he agrees. "It is a fair point but you also have to balance up the lifestyle changes that would need to be made if you did buy."

Brothers Brian and Eamonn Fallon rent separate apartments in Ranelagh.

"The reason we're renting is quite simple, " says Brian. "We're growing the business and it's our focus at the moment. Renting is something I don't have a problem with and the freedom is great. I'm only 24 and I like being able to move on somewhere else if I want. In the immediate future, I see myself continuing to rent."