Average rental prices rose by 6.4% nationally over the year to the fourth quarter, according to a new report from the Residential Tenancies Board.
The research shows the average rent paid for a new tenancy at the end of last year was €1,054, however, the growth rate slowed somewhat from the previous quarter.
The report – covering nearly 18,000 new tenancies between last October and December – is based on actual rents paid, as opposed to asking prices.
Although the figures show average rents rose by €64 to €1,054 on an annual basis in the final three months of last year, the growth rate has levelled off, with the 6.4% annual growth recorded in the final three months of 2017 down from 8% for the previous quarter.
Rents in Dublin continue to rise, but the near 6% growth rate is the lowest since 2013.
The RTB says continued economic and demographic growth, coupled with restricted supply, continues to put pressure on the rental market.
Commenting on the Q4 Index, RTB Director Rosalind Carroll said: “The continued strong economic and demographic growth combined with restricted supply continues to put pressure on the rental market and those seeking a place to live. We see that, in the 6.4% annual increase in new rents to the end of Q4 2017. However, this rate of increase has slowed from the previous quarter and the last time the annual growth rate in new rents was below this level was in Q1 2014.
“The report shows that in the Dublin rental market rents continue to increase (from €1,494 in Q3 to €1,511), however, the quarter on quarter growth rate at 1.1% has slowed compared to the previous quarters. Within the figures published today we can see some sense of the pressure on rents in Dublin rippling out to the wider GDA while outside the GDA new rents actually fell in Q4”.
“Finally, it is worth noting that the Rent Index is based on new tenancies registered and therefore does not reflect what is happening within existing tenancies. Some of the new tenancies will be properties new to the rental market (i.e. not let in the previous 24 months) and therefore are exempt from the 4% rent restrictions of the Rent Pressure Zones (RPZs). Further reports and data will provide additional insight in to the impact of the RPZs and their impact on the rental market.”
The Residential Tenancies Board Index shows:
- While rents have increased, the rate of growth has slowed in Dublin, Cork and nationally.
- National average rent for new tenancies was €1,054 (up €12 from the previous quarter).
- In Dublin the average rent stood at €1,511; in the Greater Dublin Area (Meath, Wicklow and Kildare) at €1,103; outside of the Greater Dublin Area was €793.
- Changes in average rents nationally of 1.1%, in Dublin 1.1%; Greater Dublin Area (excl. Dublin) 3.3%, Outside Greater Dublin Area -1.3%.