RTB publishes Q4 2018 Rent Index

RTB’s latest ‘Rent Index’ results mean that the Local Electoral Areas of Navan and Limerick City East will be designated Rent Pressure Zones while nationally rents have moderated in the quarter

* The Local Electoral Areas (LEAs) of Navan in County Meath and Limerick City East will be designated Rent Pressure Zones.

* The RTB Q4 2018 Rent Index shows that quarter on quarter rents fell by 0.3% nationally.

* The RTB Rent Index shows that while annually national rent increased by 6.9% to €1,134 in Q4 2018, an increase of €73 from Q4 2017, since Q3 2018 the national standardised rent fell.

* The average rent for Dublin was €1,650 representing an increase of €120 from Q4 2017

* Moderation in rent inflation in the quarter across Dublin, the Greater Dublin Area counties and the rest of the country.

Thursday, 28 March 2019: 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 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 Residential Pressure Zones to be set for the Local Electoral Areas of Limerick City East and Navan. These are the first RPZs to be designated since September 2017. This is important for landlords and tenants as it means that rents in these LEAs 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.”

“Looking back over the 2018 year, we have seen another year with continued pressures in the market and continued rent inflation, with rents now 15% higher nationally than the peak in 2007, and 25% higher in the Dublin market. We have seen some moderation in the market in the last two quarters, we would hope with more supply coming on stream and the RTB getting more regulatory powers that we will see further easing of rent inflation in 2019.”

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.

Market insights

* 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:

Rent Index Report Q4 2018

Supporting infographic

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 per cent in Q4 2018, a deceleration of 2.3 per cent from Q3 2018. On a year-on-year basis, GDA (excluding Dublin) rents were up 5.3 per cent.

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 per cent in Q4 2018. On a year-on-year basis, rents outside the GDA were up 5.5 per cent.

ENDS// For more information or to arrange an interview with Rosalind Carroll, Director of the Residential Tenancies Board please contact; Jillian Garvey, Carr Communications jgarvey@carrcommunications.ie /083 8919 583

NOTES TO EDITOR: Many Irish renters live in urban centres and prefer to live close to jobs and amenities. To provide more insight into rental developments across cities in Ireland, we present standardised average rents for each of the cities. The data are presented in Table 7. (See page 20 of the RTB Rent Index Q4 2018)

The Residential Tenancies Board and the Rent Index Report

The RTB Rent Index is the most accurate and authoritative rent report of its kind on the private accommodation sector in Ireland, as it is based on actual data from all new tenancy agreements registered with the RTB nationally in Q4 last year. This regulatory data is more accurate than any other samples informing other reports or indices.

The Residential Tenancies Board (RTB) is a public body set up to support and develops a well - functioning rental housing sector. Our remit covers both the private rental sector and not-for-profit housing providers also referred to as Approved Housing Bodies. Our role is to regulate the rental sector; provide information to tenants and landlords; maintain a national register of tenancies; resolve disputes between tenants and landlords; conduct research and provide information to inform policy. Information, education and research We provide high quality information to tenants and landlords as well as to the general public to help them understand their rights and responsibilities. We also provide accurate and authoritative research and data on the rental sector, such as the RTB Quarterly Rent Index, which allows us to monitor trends in the rental sector and also allows individuals to compare rents in particular locations. Registrations All private residential landlords and Approved Housing Bodies are obliged to register their tenancies. A public register is available on our website. The registration of tenancies enables us to collect important data on the sector, and is also a key part of regulating and supporting the sector and ensuring landlords and tenants are aware of their rights and responsibilities. Dispute resolution services Since 2004, we have replaced the courts in dealing with the majority of disputes between landlords and tenants through our Dispute Resolution Service. This service offers a choice of resolution types to parties – mediation or adjudication. For more information, please see www.onestopshop.rtb.ie