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Rents surge by 9pc as housing crisis worsens

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Rents are rising fast.

Rents are rising fast.

Rents are rising fast.

THE rental crisis has worsened with costs for new tenancies shooting up by 9.2pc in the first three months of this year when compared to the same period last year.

This is one of the largest quarterly rises on record.

The Residential Tenancies Board (RTB) said the national average rent in new tenancies is now €1,460, which is an increase of €46 compared to the last three months of last year.

Rents for new tenancies in Dublin are now €2,015 per month.

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The 9.2pc rise is the highest annual percentage increase since the last three months of 2017 when rent levels increased by 9.6pc.

The rent index report is based on new tenancies in existing rental properties, new properties being let for the first time, and (new tenancies in properties that have not been let in the previous two years.

The RTB stressed that the rent index is not deigned to provide a measure of the rents being paid by existing tenants.

It is based on actual rents paid under 10,414 private tenancies which were newly registered with the RTB in the first quarter.

But there has been a 32pc fall off in the number of registered tenancies used in the sample due to a mass exodus of landlords from the market.

The average rent for a new tenancy is Galway city is now €1,413.

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In Limerick city is €1,273, and €1,453 in Cork city.

Waterford city has an average new rental cost of €1,054.

The lowest monthly rents are in Leitrim, where the standardised average rent in new tenancies stands at €734 per month.

Fourteen counties have standardised average rents in new tenancies above €1,000 per month.

These are in Carlow, Cork, Dublin, Galway, Kildare, Kilkenny, Laois, Limerick, Louth, Meath, Waterford, Westmeath, Wexford, and Wicklow.

The lowest yearly growth in the standardised average rent for new tenancies is in Wicklow where rents grew by 1.3pc.

The county with the fastest growing standardised average rent in new is Leitrim which reported 22.4pc year-on-year growth.

Twelve counties had a yearly growth rate in new tenancy rents above 10pc in the first quarter.

RTB director Niall Byrne said the board was seeing a continued fall in the number of tenancies that were registered with it.

“These results are likely still indirectly impacted by Covid-19 public health measures along with constraints in supply and tenants choosing to stay longer in their existing tenancies.”

He added that the index results only provide us with a snapshot into a small proportion of the private rental sector in Ireland.

For a typical two-bedroom house in Dublin average rent for new tenancies at €1,902 per month is €889 more than the level for a two-bedroom house outside Dublin.

The standardised average rent in new tenancies for a two-bedroom house in the Greater Dublin Area is €1,325.

When it comes to a typical two-bedroom apartment, the average rent in new tenancies in Dublin is €2,078 per month.

This is €973 more than the level for a two-bedroom apartment outside Dublin, the RTB said.


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