PRIVATE SECTOR RENTS IN IRELAND ROSE 7.1% IN THE YEAR TO QUARTER 2, 2015
RENT FOR HOUSES WERE UP 6.4% & APARTMENT RENTS ROSE BY 7.6%
DUBLIN RENTS NOW 3.5% LOWER THAN 2007 PEAK
— LATEST DATA FROM PRTB QUARTERLY RENT INDEX
Monthly rents for private sector accommodation across the country rose 7.1% in the second quarter of (Q2) of this year compared with the same period last year. Nationally, rents for houses were 6.4% higher, while apartment rents were 7.6% higher than in Q2 of 2014.
Annual growth in the Dublin market was stronger, up by 9.2%. Dublin house rents were up 8.8% and Dublin apartment rents were higher by 9.4%. Annual growth in rents for the market outside Dublin remains more subdued, recording growth of 5.8% when compared to Q2 of 2014. Again the performance differs by property type. The rent for houses outside Dublin increased by 5.8%, while apartments outside Dublin experienced an increase of 5.9%.
This data comes from the latest PRTB Quarterly Rent Index
which is compiled by the Economic and Social Research Institute (ESRI)
for the Board. It is the most accurate and authoritative rent report of its kind on the private accommodation sector in Ireland. This is because it is based on the actual
rents being paid, according to the PRTB’s records, as distinct from the asking
In monetary terms, the rent for private sector accommodation across the whole country in Q2, 2015, was €878 – up from €820 in Q2 2014. The rent for apartments nationally was €922 (€857 a year earlier) and for a house it was €853 (€801 a year earlier). In Dublin, the rent in Q2, 2015, was €1,387 for a house and €1,260 for an apartment. A year earlier, Q2, 2014, the rent for a house was €1,275, and for an apartment it was €1,152. This represents a monthly increase in Dublin rent of €112 for a house and €108 for an apartment over the course of the 12 month period.
Outside Dublin, the rent in Q2, 2015, was €677, with houses averaging €695 and apartments €660. A year earlier, these figures stood at €640, €656 and €623 respectively. This represents a monthly increase in rent outside of Dublin of €39 for a house and €37 for an apartment in the 12 month period.
Looking at the quarter on quarter picture for 2015, nationally the rate of increase in monthly rent levels was 2.9% in Q2 of this year compared to Q1, 2015. This compares to a national quarterly growth rate of 1.3% in Q1, 2015. Looking at trends in more detail, monthly rents for houses recorded quarter-on-quarter growth of 2.4% in the second quarter of the year, while rents for apartments grew by 3% when compared with Q1, 2015.
The results show quarterly growth in rents outside Dublin of 2%, with rents in Dublin showing stronger growth of 4.2% in the quarter. Rents for houses in Dublin grew by 2.9% compared to Q1, 2015, while Dublin apartment rents were higher by 4% in the quarter. The rent indices show, for properties outside Dublin, rents in Q2, 2015, when compared with the first quarter of the year, were up by 2%. The growth in rents outside Dublin primarily reflects an increase in rents for houses, up by 2.3% on a quarterly basis, while rents for apartments outside Dublin were up by 1.5% when compared to Q1, 2015.
The PRTB/ESRI Rent Index shows that, nationally rents peaked in Q4, 2007 before declining by 24% to their trough in Q1 of 2012. By Q2, 2015 rents nationally were 13.1% lower than their peak. While the peak-to-trough in the Dublin market was similar to that experienced nationally, the strength of the recovery in Dublin means that rents now are just 3.5% lower than their highest point. In contrast, the market outside Dublin has experienced more subdued growth, and rental levels remain over 18% off their peak levels.
The PRTB website www.prtb.ie
(click on “rent index”) also contains an Average Rent Dataset which enables people to check the average rent being paid for five different categories of dwelling types throughout the country, in both urban and rural areas. This means people can check what is the actual rent being paid for, say, a semi-detached house or a two-bed apartment in their neighbourhood, or in other parts of the country.
All landlords are legally obliged to register tenancies with the PRTB and the number of new registrations with the PRTB in Q2, 2015, was 21,606. The overall number of tenancies registered with the PRTB as at the end of Q2, 2015, was 322,662.
The PRTB Index is of assistance for a range of Government purposes, including housing policy generally, and informing the Department of Social Protection’s Rent Supplement scheme. It is also an important reference document in landlord/tenant disputes on rent. It was developed in consultation and co-operation with landlord representative groups such as the Irish Property Owners Association, irishlandlord.com, the Institute of Professional Auctioneers and Valuers, the Society of Chartered Surveyors of Ireland, and tenant representative groups such as Threshold and USI (Union of Students in Ireland). About the PRTB and the Private Rented Residential Market The Private Residential Tenancies Board (PRTB) was established in 2004 to operate a national tenancy registration system and to resolve disputes between landlords and tenants. It also provides policy advice to the Government on the private rented sector, and its dispute resolution service replaces the courts in relation to the majority of landlord and tenant disputes. According to the 2011 Census, nearly 1 in 5 households in the country were renting their accommodation in the private sector.