Annual growth in the Dublin private rented market in the year to the end of June this year was 10.5%, with Dublin house rents up by 8.5% and Dublin apartment rents up by 12.1%. In contrast, annual growth in rents for the market outside Dublin was more subdued, recording growth of 2.6% when compared to the second quarter of 2013. Again the performance differs by property type. The monthly rent for houses outside Dublin increased by just 2.4%, while apartments outside Dublin experienced an increase of 3.2%.
This data is from the Quarterly Rent Index of the Private Residential Tenancies Board (PRTB), which operates a national registration system for the private rented sector. It is compiled by Economic and Social Research Institute (ESRI) for the Board. This 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.
This latest data for the private rented sector means that in the second quarter of this year, monthly rents for the whole country were almost 19% lower than their peak in late 2007, with Dublin rents down 12.7% from that peak. Rents for houses nationally are 22.3% lower than they were in the fourth quarter of 2007. Rents for houses outside Dublin are 25.2% lower than their peak, while rents for Dublin houses are 11.7% lower than in late 2007.
Monthly rents for apartments are 16.1% lower than they were in the first quarter of 2008. Apartment rents outside Dublin are 21% lower than their peak, while rents for Dublin apartments are 12% lower than in late 2007. Dublin apartments account for 21.8% of registrations with the PRTB.
Looking at quarterly rent movements, Q2, 2014 compared with Q1, 2014, rents across the country increased by 3% in Q2, 2014, compared with Q1, with Dublin rents again showing the highest rate of increase – up 4.9% in the period – whereas the rest of the country saw private rents increase by 1.7% over the same period.
On a monetary basis, this means that the monthly rent for houses in the country in Q2, 2014 was €793, while for apartments it was €858. In Dublin the rent for a house was €1,275, and for an apartment it was €1,134, while outside Dublin the house rent was €648, and for an apartment it was €640.
The Rent Index shows that monthly rents for houses across the whole country were up by 2.6% in the second quarter of this year compared to Q1, 2014, while rents for apartments were 3.4% higher than in Q1, 2014. While rents for houses in Dublin increased by 3.5%, rents for Dublin apartments rose by 5.6% quarter on quarter. Rents for houses outside Dublin recorded a quarterly increase of 2.3%. The index for apartment rents outside Dublin increased by 0.9 per cent in the second quarter.
On an annual basis, nationally, rents were 5.2% higher than in Q2, 2013. Nationally, rents for houses were 3.7% higher, while apartment rents were 6.9% higher than in the same quarter of 2013.
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 is a very important aspect of Ireland’s housing policy, and has doubled in size between 2006 and 2011. It is also serving an important role in terms of Social Housing, with approximately 77,000 Rent Supplement tenants and 36,000 RAS (Rental Accommodation Scheme) tenants now living in the private rented sector.
“However, the rate of rent increase is of concern in that it is impacting on affordability, especially in Dublin. The PRTB will be submitting a strategy for the private rented sector to the Minister in the near future, which will examine measures to increase supply, improve affordability and ensure that standards are adhered to”.
All landlords are legally obliged to register tenancies with the Board and the number of new registrations with the PRTB in Quarter 2, 2014 was 25,500.
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).