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Price of renting in capital jumps by €103 in a year

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THE COST of renting private accommodation in the capital has jumped by 9.5pc - an average of €103 - over the last year.

But the news, which will come as no surprise to people looking to rent a property in the capital, isn't all bad as the rate of increase for Dublin slowed in the third quarter of the year.

According to the latest rent index from the Private Residential Tenancies Board (PRTB), the rate of slowdown was not replicated outside the capital, where prices are increasing.

Pace

It found that the pace of increase in the rental market outside Dublin was stronger between July and September this year when compared with the April to June increase.

Rents in Dublin grew by 2.3pc in the third quarter, when compared to the second quarter of the year.

While rents for houses in the capital increased by 3.1pc, rents for Dublin apartments rose by 2pc quarter on quarter.

Year-on-year growth in Dublin was stronger, up by 9.5pc or €103, with Dublin house rents up by 7.5pc, or €92, and Dublin apartment rents higher by 11.6pc, or €122.

In contrast, annual growth in rents for the market outside Dublin was more subdued, recording growth of 3.8pc when compared with the third quarter of last year - up from €631 to €655. The performance differed by property type.

Monthly rent for houses outside Dublin increased by an average of 3.4pc, or €22, up from €648 to €670, while apartments outside Dublin experienced an increase of 5pc, or €30 from €607 to €637.

The quarterly comparison showed that overall rents outside of Dublin were up 2.5pc in the third quarter of 2014, when compared to the second quarter of the year.

When Dublin and the rest of the county were considered together, monthly rent levels rose by 2.3pc in the third quarter of 2014 when compared with the second quarter.

For houses, the increase was 3pc quarter on quarter, while rents for apartments were up 1.5pc.

Private rents nationally were 5.6pc higher in the third quarter of this year when compared to the same period last year - up from €790 to €835, a rise of €45.

Rents for houses were 4.3pc higher, up from €786 to €819, while apartment rents were 7.3pc higher than the third quarter last year - up from €805 to €864.

The figures were compiled by the Economic and Social Research Institute (ESRI) for the PRTB.

Increase

The board said that it was the most accurate and authoritative rent report of its kind.

"This is because it is based on the actual rents being paid, according to the PRTB's records, as distinct from the asking or advertised rent," the board said.

Rents are now 17pc lower than their peak in late 2007, with Dublin rents down 9.4pc from peak.

Rents for houses are 19.6pc lower than they were in the last three months of 2007.

Excluding Dublin, rents for houses are 22.8pc lower than their peak, while rents for Dublin houses are 8.4pc lower than in late 2007.

hnews@herald.ie


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