PRIVATE SECTOR RENTS IN IRELAND ROSE 6.9% FROM Q1 2014 TO Q1 2015
RENT FOR HOUSES UP 6.5% & APARTMENT RENTS UP 7.8%
APARTMENT RENTS IN DUBLIN UP 10.8% IN THE YEAR
Rents for private sector accommodation across the country rose by 6.9% in the year between the first quarter (Q1) of last year and Q1 of this year. Rents for houses were 6.5% higher, while apartment rents were 7.8% higher. Annual growth in the Dublin market was stronger, up by 9.6%, with house rents in the capital up 9% in the year, and apartment rents up 10.8%. Annual growth in rents for the market outside Dublin remained more subdued, recording growth of 5.3% compared to Q1, 2014. Again the performance differed by property type. House rents outside Dublin increased by 5.7%, while apartments increased by 5.2%.
This data comes from the latest PRTB 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.
In monetary terms, the rent for private sector accommodation across the whole country in Q1, 2015, was €835 – up from €781 in Q1 2014. The rent for apartments nationally was €878 (€815 a year earlier) and for a house it was €814 (€765 a year earlier). In Dublin, the rent in Q1, 2015, was €1,325 for a house and €1,205 for an apartment. A year earlier, Q1, 2014, the rent for a house was €1,215, and for an apartment it was €1,087. This represents a monthly increase in Dublin rent of €110 for a house or €118 for an apartment over the course of the 12 month period.
Outside Dublin, the rent in Q1, 2015, was €647, with houses averaging €665 and apartments, €627. A year earlier, these figures stood at €614, €629 and €596 respectively. This represents a monthly increase in rent outside of Dublin of €36 for a house and €31 for an apartment in the 12 month period.
Comparing quarter with quarter, the rate of increase in monthly rents nationally in Q1 this year was 1.2% compared to Q4, 2014. Looking at trends in more detail, national monthly rents for houses rose by 2% in Q1 this year compared to Q4, 2014. In contrast, rents for apartments grew by 1.3% when compared with Q4, 2014.
An interesting feature of the latest findings is that they suggest the driver of growth changed in Q1, 2015, with rents outside Dublin showing a stronger rate of increase than Dublin rents.
For properties outside Dublin rents, rents in Q1, 2015, were 1.5% higher than in Q4, 2014. The growth in rents outside Dublin primarily reflects the apartment market, up by 2.1% on a quarterly basis, while rents for houses outside Dublin were up 1.6% when compared to Q4, 2014. Rents in Dublin were 0.6% higher when compared with Q4, 2014. Rents for houses in Dublin grew by 2.7% compared to Q4, 2014, while apartment rents were 0.8% higher in Q1, 2015.
Private accommodation rents across the whole country in Q1 of this year were 16.9% lower than their peak, which occurred in the final quarter of 2007. The Rent Index shows that, nationally, rents peaked in the fourth quarter of 2007 before declining by 25% to their trough in the first quarter of 2012.
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 now are just 7.5% lower than their highest point. In contrast, the market outside Dublin has experienced more subdued growth, and rental levels remain nearly 22% off their peak levels.
Earlier this week, the PRTB launched a nationwide advertising campaign to raise awareness among both tenants and landlords of their rental rights. Referring to one of the campaign topics, the Director of the board, Ms. Anne Marie Caulfield said that “in a market with rising rents, it is important that both landlords and tenants know it is not permissible to charge more than the market rent, and that rents can only be increased once in a 12 month period”.
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 means people can check what is the actual rent being paid for, say, a semi-detached house or a two-bed apartment in their neighbourhood, or in other parts of the country.
Ms. Caulfield also said she would “encourage anyone who is currently renting, or considering renting, to log on to the PRTB website and familiarise themselves with their overall rights and responsibilities. They can also download a copy of the ‘Good Tenant, Good Landlord’ leaflet which covers these issues in great detail”.
All landlords are legally obliged to register tenancies with the PRTB and the number of new registrations with the PRTB in Q1, 2015, was 23,960. The overall number of tenancies registered with the PRTB as at the end of Q1, 2015, was 308,096.
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.