Rent hikes continue though pace has slowed
Rents are continuing to rise but at a slower pace according to the latest rent index from the Residential Tenancies Board (RTB).
It shows that rents nationally increased to €1,122 per month between July and September, a €78 increase compared to the same period last year.
The average rent for Dublin was €1,620, an increase of €141 last year.
Dublin and the greater Dublin area accounted for 45% of all tenancies.
Rents in Limerick City have been growing most rapidly, increasing from €830 to €928 year-on-year.
Outside of Dublin, rents were highest in Galway City at €1,187 per month. In Cork City rents stood at €1,172 while they were €638 in Waterford City.
Three of the cities experienced a double-digit year-on-year increase — Limerick (11.8%), Dublin (11%) and Waterford City (10%).
The year-on-year change (1.3%) was lowest in Galway City where rents increased from 1,172 to 1,187.
It also shows that rent increases for existing tenancies (5.4%) were lower than for new tenancies (8%) year-on-year.
According to the index, the results indicate that Rent Pressure Zones are having a “braking effect” on the level of increase.
The index, compiled together with the Economic and Social Research Institute, is based on 25,448 new tenancies registered with the RTB in the same quarter.
Despite high rental prices and record demand, the number of landlords is falling.
The number of tenancies has fallen by 8,829 and there are 1,778 fewer landlords than in 2015.
Director of the RTB, Rosalind Carroll said the pace of rent increase under existing tenancies was well behind that of new tenancies.
It showed that Rent Pressure Zones were working much better within existing tenancies but there was still more to do in respect of new tenancies.
The number of landlords continues to decrease and this was a matter of “deep concern” said Ms Carroll.
If we are to meet demand and ensure a well functioning rental sector, then we need more landlords and different types of landlords to offer market options.
“With many landlords leaving, it is an increasing strain and pressure and this must be addressed.”
Dublin is experiencing the most acute rent pressures with fewer than 15% of tenancies agreed at less than €1,000 per month, compared to 70% of tenancies in other parts of the country.
“We can also see the Dublin rental sector is dominated by apartments (73%) compared to less than one-in-two elsewhere,” said Ms Carroll.
It was crucial, she said, that new legislation coming into effect next year, empowers the RTB to investigate and apply sanctions in cases where landlords are increasing their rents above Rent Pressure Zone Limits.
Standardised average rent for new tenancies was €1,208 a month and for existing tenancies, it was €956, compared to €1,190 and €936 respectively between April and June this year.
It also emerged that tenancies are lasting longer with a higher proportion of properties — one in four, renting for over 12 months.
