Navan declared a Rent Pressure Zone

Story by John Donohoe

Thursday, 28th March, 2019 11:01am

Navan declared a Rent Pressure Zone

Navan is to be designated a Rent Pressure Zone, as the latest Rent Index from the Residential Tenancies Board (RTB), shows that the town Limerick City East meet teh designated criteria.

Following designation as an RPZ, rent increases in these areas are limited to a maximum rent increase of four per cent per annum.

The standardised average rent in Navan has grown greater or equal to seven per cent in the last six consecutive quarters, and for the first time in Q4 2018 the average rent, at €1,154.19, was above the national standardised average rent.

The Navan LEA consists of; Ardbraccan, Bective, Navan rural and Navan urban.  Navan is now the fourth LEA in County Meath to be designated a Rental Pressure Zone, after Ratoath, Ashbourne and Laytown-Bettystown were designated as RPZs in 2017.
 

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 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 four per cent 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 per cent 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”

According to the latest Rent Index, 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.

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