Rent Index for new tenancies shows a 9 per cent annual growth rate nationally
The Residential Tenancies Board's (RTB) quarterly Rent Index report for the October to December period (Q4) of 2021 reports that new tenancies show a 9 per cent annual growth rate nationally.
The Index shows that the standardised average rent in new tenancies was €1,415 per month in Q4 2021, which is a decrease of €4 compared to Q3 2021. On a yearly basis, rents in new tenancies grew by 9.0%, which is higher than the yearly growth rate in Q3 2021 (8.8%).
The standardised average rent in new tenancies for houses in Ireland stood at €1,390 per month, which is a slight drop of 0.9% on the previous quarter and an increase of 9.0% compared to last year. The standardised average rent in new tenancies for apartments stood at €1,459 per month, which is an increase of 0.6% on Q3 2021 and an increase of 9.3% on Q4 2020.
Regional Trends
In Q4 2021, rents in new tenancies in Dublin were substantially higher than those outside Dublin (Non-Dublin) at €1,972 per month, compared to €1,104 per month. The standardised average rent in new tenancies in the Greater Dublin Area (GDA) stood at €1,393 as of Q4 2021 while it was €1,059 outside the GDA.
For both houses and apartments, annual growth in rents for new tenancies was strongest outside the GDA. The lowest annual growth across the regions for both houses and apartments were recorded in the GDA.
On a quarter-on-quarter basis, the standardised average rent in new tenancies fell across all regions. In Dublin, on a quarter-on-quarter basis rent levels fell by 0.8%; Outside Dublin (Non-Dublin) they fell by 1.3%; in the Greater Dublin Area (GDA) they fell by 4%; and, Outside the GDA they fell by 1.7%. The decline is likely driven by seasonal factors which affect the third quarter comparison period.
County Developments
The highest standardised average rent in new tenancies for Q4 2021 was in Dublin at €1,972 per month while the lowest monthly rents were in Leitrim, where the standardised average rent in new tenancies stood at €740 per month.
On a quarterly basis, rents in new tenancies fell in 14 counties in Q4 2021. Rents for new tenancies in Roscommon increased the most with a quarterly growth rate of 12.6%. On an annualised basis, in Kildare for Q4 2021 there was no growth (0.0 percent) in the standardised average rent in new tenancies.
Niall Byrne, RTB Director, commenting on the release of the RTB Q4 2021 Rent Index said:
“Today's Rent Index reports on rental price changes in new tenancies and shows continued growth in rents being set for this proportion of the overall private rented sector. We also note a fall in the number of tenancies registered in the quarter. This is likely driven by factors such as continuing constraints on the supply of rental properties and by current tenants choosing to stay longer in their existing tenancies.”
He continued:
“On 4 April 2022, new legislation was introduced requiring landlords to register all tenancies with the RTB on an annual basis. This is a significant change for the residential rental sector and for landlords.
"One of the public benefits from annual registration will be to provide the RTB with current data on all rents which will enable us to publish more detailed reports on rents and rent levels, for both new and existing tenancies, beginning, we expect, in 2023.
"The current Rent Index can only report on movements in rents for new tenancies registered with the RTB. With access to annual registration data, the RTB will be able to identify new rental stock that hasn’t been let previously, the type and size of landlord of this stock, the stock leaving the sector and the type and size of landlords associated with this, and, very importantly, rent levels in all existing residential rental stock."
"These forthcoming improvements will mean that the RTB will be in a stronger position to fulfil its statutory and regulatory functions in a more responsive, risk-based, and effective manner.
"It will also mean that the RTB will be better able to provide new insights and information to tenants, landlords and the wider public while also helping inform the development of residential rental sector policy.”
“Against this backdrop, the RTB continues to regulate the sector in the public interest and, in particular, to take appropriate action where a landlord has committed one of the defined breaches of tenancy law, known as improper conduct.
"While we know that the vast majority of landlords work to ensure good relations with their tenants and comply with rental law, those who clearly fail to observe the law and who deliberately breach the legal rights of tenants, will be held accountable by the RTB.
Details of all sanctions imposed for improper behaviour are publicly available on the RTB website.”