PRTB / ESRI Rent Index shows Rent in Dublin grew by 6.4% in the past year.
“Two speed market” with more modest increases elsewhere in the country.
PRTB Rent Index reveals actual rents paid for houses and apartments.
Rents for private accommodation in the Dublin region continued to increase strongly in the third quarter (July-September) of this year, but outside the capital there was more modest growth. Looking at rents on an annual basis, Dublin rents grew by 6.4%, year on year (Q3 this year versus Q3 last year), but elsewhere rents actually showed a slight decline (0.2%) over the same period. These findings come from the latest Quarterly Rent Index of the Private Residential Tenancies Board (PRTB), which is compiled for it by the Economic and Social Research Institute (ESRI).
This Rent Index is the most accurate and authoritative rent report of its kind on the private accommodation sector in Ireland. All landlords are legally obliged to register tenancies with the Board and the number of new transactions in Q3 alone (July – September 2013) was well over 46,000. Another key feature is that it reflects the actual rents being paid for rented properties, 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 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.
For example, the average rent for a three-bed semi in Co. Dublin was €1,091; a one-bed apartment in Rathmines was €828.77, and a two-bed apartment in Blanchardstown was €924.02. Elsewhere in the country, a three-bed house in Glanmire, Co. Cork, averaged €833.80; it was €638.08 in Co. Limerick, and €725.57 in Co. Galway. (More sample average rents for around the country are contained in the table at the end of this statement.)
The average standardised rent in Dublin in Q3 this year was €1,041, compared to €978 a year ago, and €1,015 in Q2 this year. For houses, it was €1,157 compared to €1,095 a year ago, and €1,124 in Q2 this year, while for apartments, it was €1,042 in Q3, compared with €983 a year ago, and €1,022 in Q2 this year.
Outside Dublin, the average standardised rent in Q3 this year was €620, compared to €622 a year ago, and €612 in Q2 this year. For houses, the figure was €622 in Q3, compared with €619 a year ago, and €608 in Q2 this year, while for apartments, the figure was €624, compared with €636 a year ago and €627 in Q2 this year. Dublin Rents up by 6.4% on an annual basis
The sub-indices show significant increases in the Dublin rental market in the past year. Rents in Dublin grew by 2.5 per cent, when compared with the second quarter of 2013, and by 6.4 per cent on an annual basis. While Dublin house rents increased by 2.9 per cent, rents for Dublin apartments rose by 2.0 per cent compared to quarter 2, 2013. On an annual basis, Dublin house rents rose by 5.7 per cent, while Dublin apartment rents increased by 6.0 per cent.
Outside Dublin rents declined annually by 0.2%, but Quarter Three shows an increase of 1.4%
Outside Dublin, the indices show a mixed picture. On an annual basis, the Outside Dublin index continues to show a very small decline of 0.2 per cent. However, figures for the last quarter may indicate that this decline is also now being reversed. The PRTB rent indices show that for properties “Outside Dublin”, rents in the third quarter, when compared with the second quarter of the year, were up by 1.4 per cent. This increase in rents outside Dublin is being driven by rents for houses and by the bigger urban areas. Rents for houses outside Dublin recorded a quarterly increase of 2.3 per cent, and rose by 0.5 per cent on an annual basis. The index for apartment rents outside Dublin recorded a quarterly decline of 0.5 per cent in the third quarter. On an annual basis, rents for apartments outside Dublin were 1.9 per cent lower than a year previously.
Measured across the country as a whole, this means that monthly rent levels increased in the third quarter of 2013, by 1.8 per cent on a mix-adjusted  basis, compared with the second quarter of the year. The annual rate of increase is similar and shows national rents increasing by 1.9 per cent compared to the third quarter of 2012. The increase reflects strong growth in rents for houses, up by 2.5 per cent, compared with the previous quarter, and by 1.8 per cent when compared with the third quarter of 2012. The increase in monthly rents for apartments was more moderate, up by 0.7 per cent from the second quarter of the year, and by 1 per cent when compared with the third quarter of 2012.
Commenting on the findings, the Director of the PRTB, Ms. Anne Marie Caulfield, said: “The latest PRTB / ESRI Rent Index continues to reflect a story of a two-speed market: the Dublin region, where rents continue to grow strongly, both quarter on quarter, and year on year. The year on year increase in rents in Dublin was 6.4%. In the rest of the country we see a more mixed picture. There was a slight fall (0.2%) year on year, but Quarter three of 2013 has seen a 1.4% rise over Quarter Two in rents for the rest of the country. This may indicate that the upward trend in Dublin is now also beginning in the rental market outside the capital, especially for houses”.
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).
Further average rent details for various categories of properties, in different parts of the country can be accessed at Q3 Rent Index Report
 Even if all rents remained unchanged over a time period, the average rent would change if the mix of properties rented changed. For example, assuming that large houses are more expensive than small ones, an increase between periods in the average size of house sold would result in the average rent rising, even if the rent for each size of house remained totally unchanged.By mix adjusting the PRTB rent index controls for changes between periods in the type of properties rented.