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National rents increased by almost €80 in the past year

New figures show rents are continuing to increase across the country. According to the Residentia...
Newstalk
Newstalk

07.25 27 Sep 2018


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National rents increased by al...

National rents increased by almost €80 in the past year

Newstalk
Newstalk

07.25 27 Sep 2018


Share this article


New figures show rents are continuing to increase across the country.

According to the Residential Tenancies Board (RTB) Rent Index, the annual growth rate for rents in Q2 was 7.6% - up from 6.9% in the previous quarter.

The national standardised average rent was €1,094, an increase of €77 year-on-year.

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New analysis in the rent index shows that annual rent inflation in existing tenancies grew by just over half the rate (4.9%) of new tenancies (8.4%).

This is the first time the report contains data on rental trends in existing and new tenancies, along with analysis on trends in the composition of the market.

Source: RTB

The report is based on over 18,700 new and renewed tenancies and showed that in Dublin, the standardised average rent was €1,587.

In the Greater Dublin Area (Wicklow, Kildare, Meath) this stood at €1,118, and outside Dublin this was €817.

On a quarter-on-quarter basis, the rental price inflation increased in Q2 to 3.4% up from 2.7% one year earlier.

The RTB suggests national growth rates are being influenced by the Dublin and the Greater Dublin Area - which account for just under half of all tenancy agreements.

The report is produced in conjunction with the Economic and Social Research Institute (ESRI).

Reasons for rising demand

The new analyses also show that in terms of the number of occupants, one or two occupants were in the majority of properties.

Since Q4 of 2017, a slight decline in the shares of properties occupied by three or more people has been seen.

Rosalind Carroll is director of the Residential Tenancies Board.

She said: "Affordability remains a significant issue in the rental market with continued economic and population growth contributing to rising demand.

"We can see rents have continued to increase with growth rates back up in Dublin.

Source: RTB

"However, additional analysis carried out in this Rent Index, gives us more insight into what is driving growth, particularly in Rent Pressure Zones.

"We have developed a new indicator to allow us to separate rental data for new tenancies and existing tenancies, or tenancies that are being renewed.

"This found that the rate of rental inflation year-on-year for existing tenancies was 4.9% just over half of the rate for new tenancies, which is 8.4%.

"This shows that rent inflation in existing tenancies is more in line with what we would expect to see in Rent Pressure Zones."

Minister's response 

Commenting on the index, Housing Minister Eoghan Murphy said: "We know that quarterly trends can be volatile, but they do continue to rise and this continues to be a challenge.

"People are paying too much in rent and this has to be better controlled.

"This is why I will shortly be introducing new rent protection measures in to the Dail."

He also said homesharing will be tackled "in the very near future."

"All of these new measures will help us move closer to a more stable and more mature rental sector.

"Some positive trends are developing though and these shouldn't be ignored.

"Rents for existing tenants seem to be in line with RPZs.

"One-in-five tenancies are for longer than four years, and one in four new tenancies agreed in the last quarter was for longer than 12 months.

"All of this is pointing to greater stability for tenants but there is still a way to go."


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