Dublin rents now over 8pc higher than 2007 peak - as average monthly costs reach €986
Private sector rents grew by 7.8pc across Ireland in Q4 2016 according to the latest Quarterly Rent Index from the Residential Tenancies Board (RTB).
The standard national average rent in the final quarter of last year stood at €986 per month.
Nationally rents are now 2.7pc below the 2007 peak, with houses and apartments outside of Dublin 11.1pc and 5.8pc below the 2007 peak level respectively, however rents in Dublin are now 8.3pc greater than the Q4 2007 peak.
The growth in rents for apartments in Dublin was more pronounced than for housing, now standing at 12.3pc above the 2007 peak, compared to 5pc for houses.
Looking at the quarter-on-quarter picture, at a national level, the growth rate increased at a rate of 2.7pc and, in Dublin, rents for houses and apartments in Q4 2016 were up by 3.3pc and 4.2pc respectively.
Outside Dublin, the pace of growth in rents for houses slowed by 0.3pc in the quarter, while the pace of growth in apartments quickened.
In 2016 the average quarterly growth in the Dublin Rent Index exceeded the equivalent growth rate in national house prices, growing 2.2pc compared to 1.4pc.
The RTB Rent Index, compiled by the Economic and Social Research Index (ESRI), has now been expanded and this edition reflects the inclusion of more localised geographical information, based on analysing rents for each Local Electoral Area (LEA).
The data captures local rental price variations more accurately and allows for disaggregation of standardised rents across all LEAs.
The figures come in a week when Unite Regional Secretary Jimmy Kelly called for the minimum wage to be increased “significantly” to tackle what he termed “Ireland’s living standards crisis”.
Rent Pressure Zones
This more granular data is used to determine what areas are designated as Rent Pressure Zones (RPZs), that is LEAs where rents increased by 7pc or more in four of the previous six quarters and where the average rent is above the average standardised national rent.
Since legislation providing for the establishment of Rent Pressure Zones (RPZs) was introduced, LEAs in the counties of Dublin, Cork, Galway, Wicklow, Meath and Kildare were designated as RPZs by Minister Simon Coveney. Now, following the findings of the RTB Q4 2016 Rent Index, two additional LEAs will meet the designation criteria for rent pressure zones, Cobh and Maynooth.
Commenting on the new, expanded format of the index, the RTB Director, Ms. Rosalind Carroll, said the RTB had sought “to provide this information as soon as possible to all concerned - tenants, landlords, estate agents, central government, local authorities and other State agencies - so that all users can benefit from this more granular-level information, and relate the information contained in the Index to the rules governing the establishment of the Rent Pressure Zones”.
“The Rent Index report shows that rents in Dublin and the surrounding commuter counties, along with Cork and Galway Cities, are among the highest relative to the standardised average rent. These results reflect a rental market that remains volatile with restricted supply”, Ms Carroll added.