According to the latest Rent Index from the Residential Tenancies Board (RTB), in the October-December period (Q4) of 2018, the standardised national average rent of tenancies in County Carlow was €817, up from €741 (+€76) one year earlier and unchanged on the previous quarter (Q3 2018).
The standardised national average rent was €1,134 per month, up from €1,061 one year earlier (€73 increase). Conversely, on a quarter-on-quarter basis, rental price inflation dropped from 2.3% in Q3 2018, down to – 0.3% in Q4 2018. This marks the first quarter since Q1 2017 that the standardised average rent has fallen relative to the previous quarter.
The RTB Rent Index, which is compiled in conjunction with the Economic and Social Research Institute (ESRI), is the authoritative guide to the Irish rental market. It is based on actual rents paid on 17,830 tenancies registered with the RTB in the quarter.
Based on the rental data of the latest Rent Index, two additional LEAs meet the designation criteria for rent pressure zones; Navan in County Meath and Limerick City East. The RTB have confirmed to the Minster that these two LEAs meet the RPZ criteria. Following designation as an RPZ, rent increases in these areas are limited to a maximum rent increase of 4% per annum (see here to view new RPZ map locations).
Commenting on the latest Rent Index results, Rosalind Carroll, Director of the Residential Tenancies Board said
“The Rent Index has now provided us with important data that enables a decision to be taken on designating two new Rent Pressure Zones to be set for the Local Electoral Areas of Limerick City East and Navan. These are the first Rent Pressure Zones to be designated since September 2017.
“This is important for landlords and tenants as it means that rents in these Local Electoral Areas will be limited to rises of a maximum of 4% annually. This should help moderate rents in these areas.
“We would encourage both landlords and tenants to contact us for more information on their rights and obligations and we will be rolling out a targeted information campaign in these areas over the coming weeks.”
The Dublin Market and the Cities
Dublin’s rental market continues to be the largest in the country in Q4 2018, accounting for nearly two-in-five new tenancies that were registered with the RTB. The standardised average rent in Dublin stood at €1,650, up from €1,530 one year earlier. This represents a 7.8% annual increase in rent in the capital. However, the standard average rent was slightly lower in quarter 4 compared to quarter 3, going from €1663 to €1650
Elsewhere in country, the second highest standardised average rents in Q4 2018 were in Cork City at €1,095 per month. Galway City standardised average rents stood at €1,064 for Q4 2018, rents in Limerick City were €929 and rents in Waterford City were €682.
New versus Renewal tenancies
- The standardised average rent for new tenancies was €1,237 per month as compared to €987 for further Part 4 renewals.
- The year on year change was faster for new tenancies compared to tenancies being renewed and re-registered with the RTB.
- The acute price pressures in Dublin are clearly evidenced with just over 10% of tenancies agreed at less than €1,000 per month as compared to 75% elsewhere.
- There are also major differences in the type of properties being rented across the different regions. In Dublin, apartments or flats make-up over 70% of the rental market in comparison to 43% in the Greater Dublin Authority and 35% in the rest of the country.
A summary of the figures from the report are below. To access the full Rent Index Report Q4 2018 findings and supporting info-graphic, you can download the information via the links provided:
Greater Dublin Area (Meath, Kildare, Wicklow)
- While the level of rents in the GDA (excluding Dublin) are not as high as in Dublin, as of Q4 2018, the standardised average rent for the GDA (excluding Dublin) stood at €1,167 up from €1,108 the previous year.
- The quarter-on-quarter growth rate in the GDA (excluding Dublin) was 0.7% in Q4 2018, a deceleration of 2.3% from Q3 2018. On a year-on-year basis, GDA (excluding Dublin) rents were up 5.3%.
Rest of the country
- The standardised average rent for outside the GDA stood at €833 in Q4 2018, up from €789 the previous year.
- The quarter-on-quarter growth rate for the rest of the country was -3.8% in Q4 2018. On a year-on-year basis, rents outside the GDA were up 5.5%.