Q2 2019 RTB Quarterly Rent Index released

The RTB Rent Index shows 7% annual increase in national rents as two new Rent Pressure Zones announced

  • The  Q2 2019 RTB Rent Index shows the national standardised average rent was €1,202 per month.
  • Report shows a 7% annual increase and a 3% quarter-on-quarter rise in national standardised average rent indicating a strengthening in the quarterly inflation.
  • The average rent for Dublin was €1,713 representing an increase of €114 since Q2 2018.
  • Based on the new Rent Pressure Zone criteria, Carlow Local Electoral Area and Macroom Local Electoral Area are to become Rent Pressure Zone areas.

 26th September 2019: According to the latest Rent Index from the Residential Tenancies Board (RTB), in the April-June period (Q2) of 2019, the standardised national average rent was €1,202 per month, up from €1,123 one year earlier (€79 increase). On a quarter-on-quarter basis, rents grew nationally by 3% in Q2 2019.

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 19,047 tenancies registered with the RTB in the quarter.

Following referral from the Housing Agency and the Minister for Housing, Planning and Local Government, Eoghan Murphy TD, the RTB, using the Q 2 2019 Rent Index has confirmed to Minister Murphy that two Local Electoral Areas (LEAs), Macroom LEA and Carlow LEA meet the designation criteria. As a result, these LEAs will be designated Rent Pressure Zones as of today, 26th September 2019.

 

Commenting on the latest Rent Index Report, Rosalind Carroll, Director of the Residential Tenancies Board said; 

“We know Rent Pressure Zones are having an impact at an individual level. The RTB is supporting compliance through public awareness campaigns, online resources and information.

However, there is no one quick fix for the rental sector and regulation is only part of the answer. The market is complex, our research illustrates this and we will be working with the ESRI to gain further insights into the factors driving rent inflation. It is important that policy is informed by the most accurate information in order to avoid any unintended consequences.

It is really important that landlords and tenants go to www.rtb.ie where they can check if their rental home is in a Rent Pressure Zone and what rent can be charged.”

 

Growth remains high in Dublin where the standardised average rent is now €1,713 per month, up from €1,599 (€114) in the same quarter the previous year. This represents a 7.1% annual increase in rent in the capital. On a quarterly basis the standardised average rent has increased by €57 per month (3.5%) in comparison to Q1 2019.

Outside of Dublin, the standardised average rent is considerably less, standing at €903 in Q2 2019. There are also very different rental markets across LEAs with standardised average rents ranging from €2,328 in Stillorgan, County Dublin, to €489 in Lifford-Stranorlar, County Donegal.

As of Q2 2019, there were seven counties where the standardised average rent exceeds (or equals) €1,000 per month – Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow. Limerick falls just under this €1,000 threshold with a standardised average rent of €991. The high rental levels in these areas relative to other counties reflects the concentration of demand close to the country’s largest employment hubs.

 

RTB Director Rosalind Carroll added; 

“The RTB Rent Index is an important tool in helping understand the rental sector.  While the pace of rental growth has slowed since our last quarterly report, the continued growth levels over consecutive quarters is not sustainable. The average national rent at this point is now 21% higher than the peak in Q4 2007 and the Dublin average rent is 32% higher than the peak. 

To gain a more in-depth understanding of the drivers of this growth, the RTB will be working with the ESRI to provide further analysis and evidence to inform policy.

There has been significant legislative change implemented in the last four months and since the 1st July the RTB has increased powers to investigate and sanction non-compliance with Rent Pressure Zone measures, in particular where there is knowing non-compliance. It will take time to see the impact of these changes. Our first investigations under these new powers have now been officially commenced”.

 

The Q2 2019 RTB Rent Index Report and supporting info-graphic, are available here: