Rent still rising but at slower rate, tenancy index reveals

The cost of renting a home in the Republic is continuing to climb, although at a slower rate than before, according to new figures.

The Residential Tenancies Board’s latest index shows rents growing by 2.3 per cent from July to September, a growth rate marginally lower than the preceding three month’s rate of 3.5 per cent.

The nationwide slowdown appears to be driven by a marginal fall in Dublin house rents of 0.6 per cent, although offsetting that decline somewhat was an increase in the average rent for Dublin apartments of 1.5 per cent.

The decline in quarterly Dublin house rents is the first one recorded since 2013 and suggests that rents outside Dublin are now rising at a faster pace than in the capital.

On an annual basis, rents nationally are now 8.6 per cent higher than they were this time last year. In cash terms, this equates to an increase from an average of €897 to €973.

Annual growth in Dublin was put at 7.1 per cent, with the average monthly rent put at €1,375 compared with a figure of €1,285 in the same period last year. Dublin house rents were up by 3.3 per cent from €1,431 to €1,478 while apartment rents in the capital were 9.6 per cent higher – up from €1,275 to €1,397.

Outside Dublin

Annual growth in rents for the market outside Dublin was put at 9.7 per cent – up from €705 to €773. Monthly rent for houses outside Dublin went up from €735 to €800 while apartments outside Dublin experienced an increase from €666 up to €740.

The data comes from the Quarterly Rent Index compiled by the Economic and Social Research Institute (ESRI) for the Residential Tenancies Board.

It is based on 30,260 new tenancies which began in the third quarter of this year, and which were registered with the board.

“While the rate of growth in private sector rents appears to be moderating, it is prudent not to read too much into the results for any single quarter,” said the board’s director, Rosalind Carroll, adding that the market was “still volatile and therefore it is difficult to identify patterns”.

The Peter McVerry Trust, the homeless and housing charity, called on Minister for Housing Simon Coveney to urgently bring forward legislation to introduce rent regulation.

“Peter McVerry Trust is very concerned that continuing to allow the market to determine the cost of renting will only push more individuals and families into homelessness, ” its chief executive Pat Doyle said.

However, the Institute of Professional Auctioneers and Valuers said the report contained “hard and comprehensive evidence” the market had peaked. It said a slowing rate of growth in rents and the fall in Dublin house rents was “evidence that the market is changing, obviating the need for rent controls”.