• DUBLIN RENTS INCREASED BY 9.5% IN THE PAST YEAR.
• MONTHLY RENTS NATIONALLY NOW 17% BELOW 2007 PEAK.
Although private sector rents have continued to increase, the rate of growth moderated in the third quarter of the year (July-September), according to the latest Rent Index from the Private Residential Tenancies Board (PRTB). This moderation is a reflection of trends in the Dublin rental market, whereas the pace of increase in the rental market outside Dublin was stronger in Q3 when compared with Q2 of this year.
Rents in Dublin grew by 2.3% in Q3 when compared with Q2, 2014. While rents for houses in Dublin increased by 3.1%, rents for Dublin apartments rose by 2% quarter on quarter. The rent indices for properties outside Dublin show rents in Q3, 2014, when compared to Q2, 2014, were up by 2.5%. Rents for houses outside Dublin recorded a quarterly increase of 3%. The index for apartment rents outside Dublin increased by 1.8% in Q3 2014.
At a national level, monthly rent levels rose by 2.3% in Q3 2014 when compared with the second quarter. Looking at trends in more detail, monthly rents for houses were up by 3% quarter on quarter, while rents for apartments were 1.5% higher than in Q2, 2014.
Private sector rents nationally were 5.6 per cent higher in Quarter 3 this year when compared to the same period last year; up from €790 to €835, a rise of €45. Rents for houses were 4.3 per cent higher, up from €786 to €819, while apartment rents were 7.3 per cent higher than in Q3, 2013; up from €805 to €864.
Annual growth in the Dublin market was stronger, up by 9.5 per cent (€103), with Dublin house rents up by 7.5 per cent (€92) and Dublin apartment rents higher by 11.6 per cent (€122). In contrast, annual growth in rents for the market outside Dublin was more subdued, recording growth of 3.8 per cent when compared to Q3, 2013; up from €631 to €655. Again the performance differs by property type. Monthly rent for houses outside Dublin increased by 3.4 per cent (€22), up from €648 to €670, while apartments outside Dublin experienced an increase of 5 per cent (€30), from €607 to €637.
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 longer-term trends, in Q3, 2014, monthly rents were over 17% lower than their peak in late 2007, with Dublin rents down 9.4% from peak. Rents for houses are 19.6% lower than they were in Q4, 2007. Rents for houses outside Dublin are 22.8% lower than their peak, while rents for Dublin houses are 8.4% lower than in late 2007. Nationally, monthly rents for apartments are 15.4% lower than in Q4, 2007. Apartment rents outside Dublin are 21.3% lower than their peak, while rents for Dublin apartments are 9% lower than in late 2007.
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.
All landlords are legally obliged to register tenancies with the Board and the number of new registrations with the PRTB in Quarter 3, 2014 was 33,438. The number of tenancies registered with the PRTB as at the end of Q3, 2014 was 300,543.
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).
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.