• PRIVATE SECTOR RENTS IN IRELAND ROSE 5.8% IN 2014
• RENT FOR HOUSES UP 4.8%, APARTMENTS UP 6.4% COMPARED WITH Q4 2013
• ANNUAL GROWTH IN DUBLIN UP 9.6% WHILE MARKET OUTSIDE DUBLIN UP 3.9%
— LATEST DATA FROM PRTB QUARTERLY RENT INDEX
In 2014, rents in the private rented sector for the whole country rose by 5.8%, with rent for houses up 4.8% and apartment rents up 6.4%, as compared with Q4, 2013. This annual rate of change reflected different performances by location and by property type.
Annual growth in the Dublin market was stronger, up by 9.6% (€104), with Dublin house rents up 7%; up from €1216 to €1301, a rise of €85, and Dublin apartment rents higher by 10.9%; up from €1051 to €1166, a rise of €115. In contrast, annual growth in rents for the market outside Dublin was more subdued, recording growth of 3.9% (€24) when compared to Q4 2013. Again the performance differed by property type. Rent for houses outside Dublin increased by 4.4%; up from €639 to €667, a rise of €28, while apartments outside Dublin experienced an increase of 2.9 %; up from €595 to €612, a rise of €17.
This data comes from the PRTB’s Quarterly Rent Index which is compiled by the Economic and Social Research Institute (ESRI) for the Board. It is the most accurate and authoritative rent report of its kind on the private accommodation sector in Ireland. This is because it is based on the actual rents being paid, according to the PRTB’s records, as distinct from the asking or advertised rent.
Looking at the actual price movements within the fourth quarter of last year, rents rose slightly in Dublin, notably in the apartment sector, while outside Dublin, rents declined. However, the level of rent increase in Dublin, given the size of the Dublin market, meant that when trends for the whole country were measured, there was a slight overall increase in rents, up by 0.6%, when compared with the third quarter of 2014.
Rents in Dublin grew by 2.1% when compared with Q3, 2014. While rents for houses in Dublin increased by 0.4%, rents for Dublin apartments rose by 2.4% compared to Q3, 2014. For properties outside Dublin, rents in Q4, when compared with Q3 last year, were down 0.3%. Rents for houses outside Dublin recorded a quarterly decline of 0.7%. The index for apartment rents outside Dublin, however, recorded a quarterly decline of 0.4% in Q4.
At a national level, monthly rent levels rose at a more moderate rate in Q4, 2014, increasing by 0.6% when compared to Q3; up from €824 to €829; nationally the quarterly growth rate in Q3 had been 2.1%. Looking at trends in more detail, monthly rents for houses were lower in Q4 2014 when compared to Q3 2014, down by 0.6% quarter on quarter; down from €819 to €813. In contrast, rents for apartments were 1.2% higher than in Q3, 2014; up from €845 to €855.
In recent years rental growth has weakened in Q4, following high activity levels in Q3, consistent with the demand for student accommodation in that time period. These latest numbers for Q4, 2014 are in line with these previous trends.
The Rent Index shows that, nationally, rents peaked in Q4, 2007 before declining by 26% to their trough in Q1 of 2012. By Q4, 2014, rents nationally were 17.8% lower than their peak. Rents in 2014 were 5.6% higher in Q4 when compared to the first quarter of the year. The strongest growth took place in the Dublin market, with apartments up by 10.5% between Q1 and Q4, 2014, while house rents in Dublin rose by 6.5% over the same period.
While the peak-to-trough in the Dublin market was similar to that experienced nationally, the strength of the recovery in Dublin means that rents are just 9% lower than their highest point. In contrast, the market outside Dublin was more subdued with outside Dublin rents growing by 3.4% in the year.
Apartments continue to account for the majority of registrations with the PRTB in 2014, at nearly 43%, with the next largest share, by property type, accounted for by semi-detached, at 24.6%. Dublin city and county represents the largest market for apartment rentals, accounting for 53 % of all apartments.
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 launch of the Rent Index, Anne Marie Caulfield, PRTB Director said, “recent research commissioned by the PRTB found that one third of tenants were not fully aware of their rights as a renter. For example, many tenants do not realise that they may be entitled to continue to rent the property they are currently living in for up to four years, even if they signed a shorter lease; they don’t always know what the correct notice periods are for the termination of their tenancy; or that rent increases can only happen once during a 12 month period.
I would encourage anyone who is currently renting, or considering renting, to log on to our website and familiarise themselves with their rights and their responsibilities and the Average Rent Dataset. They can also download a copy of the “Good Tenant, Good Landlord” leaflet which explains to both tenants and landlords what their rights and obligations are.”
All landlords are legally obliged to register tenancies with the Board and the number of new registrations with the PRTB in Quarter 4, 2014 was 30,830 The number of tenancies registered with the PRTB as at the end of Q4, 2014 was 303,574.
The PRTB 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).
About the PRTB and the Private Rented Residential Market
The Private Residential Tenancies Board (PRTB) was established in 2004 to operate a national tenancy registration system and to resolve disputes between landlords and tenants. It also provides policy advice to the Government on the private rented sector, and its dispute resolution service replaces the courts in relation to the majority of landlord and tenant disputes. According to the 2011 Census, nearly 1 in 5 households in the country are renting their accommodation in the private sector.