The latest Quarterly Rent Index of the Private Residential Tenancies Board (PRTB),
covering Quarter 1 of 2014, shows that private sector rents in Dublin went up by 8.4% over the previous year (as compared with Q1 2013), with house rents rising by an average of 6.7% and apartment rents up 10.3%.
In contrast, annual growth in rents for the market outside Dublin was more subdued, recording growth of 0.8% over the year, compared to Q1 of 2013. Again the performance differed by property type. Monthly rent for houses outside Dublin increased by just 0.1%, while apartments outside Dublin experienced an increase of 2.1%.
Looking at the monetary level of rents, the average national rent for a house in Q1 2014 was €775; in Dublin, it averaged €1,227 and outside Dublin it was €637. The average apartment rent across the whole country in Q1 2014 was €830; in Dublin, it averaged €1,148, while outside Dublin it was €594.
Compiled by the Economic and Social Research Institute (ESRI), the Index showed that, for the country as a whole, including Dublin, rents in Q1 2014 were 3.5% higher than in Q1 of 2013; rents for houses were 1.6% higher, while apartment rents were 5.6% higher than in the same quarter of 2013.
Looking at the shorter quarter on quarter time-span (Q1 2014 compared with Q4 2013), monthly rent levels for the whole country were up by 0.3%. Looking at trends in more detail, monthly rents for houses were up by 0.4 per cent, while rents for apartments were 0.5% higher than in Quarter 4, 2013.
The sub-indices show that the national increase continues to reflect the stronger Dublin rental market. Rents in Dublin grew by 0.5 per cent when compared with the fourth quarter of 2013. While rents for houses in Dublin increased by 0.8 per cent, rents for Dublin apartments rose by 0.9% quarter on quarter.
The rent indices for properties outside Dublin show rents in the first quarter of 2014, when compared with the fourth quarter of last year, were up by 0.4 per cent. Rents for houses outside Dublin recorded a quarterly increase of 0.3%. The index for apartment rents outside Dublin increased by 0.2% in the first quarter.
In the first quarter of 2014, monthly rents for the country as a whole were close to 23% lower than their peak in late 2007, with Dublin rents down 16.4 per cent from peak. Rents for houses are 24% lower than they were in the fourth quarter of 2007. Rents for houses outside Dublin are 26.5% lower than their peak, while rents for Dublin houses are 15% lower than in late 2007.
Monthly rents for apartments are nearly 21% lower than they were in the first quarter of 2008. Apartment rents outside Dublin are 24.6% lower than their peak, while rents for Dublin apartments are 15% lower than in late 2007. Dublin apartments account for 22.8% of registrations with the PRTB.
The PRTB/ESRI Rent Index is the most accurate and authoritative rent report of its kind on the private accommodation sector in Ireland because it reflects the actual rents being paid, according to the PRTB’s records, as distinct from the asking or advertised rent, which is the basis of other rent reports.
The PRTB website www.prtb.ie (click on “rent index”) also contains an Average Rent Dataset which enables people to check the average rent being paid for five different categories of dwelling types throughout the country, in both urban and rural areas. This enables people to check what is the actual rent being paid for, say, a semi-detached house or a two-bed apartment in their neighbourhood, and in other parts of the country.
Commenting on the Rent Index findings, the Director of the PRTB, Ms. Anne Marie Caulfield, said: “The private rented sector in this country continues to reflect a story of two very different markets. Dublin continues to show a strong year on year growth in rent levels, while in the rest of the country shows only a marginal increase over the year to the end of March this year”.
All landlords are legally obliged to register tenancies with the Board and the number of new registrations with the PRTB in Quarter 1, 2014 was just under 33,000.
The Index is of assistance for a range of Government purposes, including housing policy generally and informing the Department of Social Protection’s Rent Supplement scheme. It is also an important reference document in landlord/tenant disputes on rent. It was developed in consultation and co-operation with landlord representative groups such as the Irish Property Owners Association, irishlandlord.com, the Institute of Professional Auctioneers and Valuers, the Society of Chartered Surveyors of Ireland, and tenant representative groups such as Threshold and USI (Union of Students in Ireland).