by Gordon Hughes
The average rent for all dwellings in the private rented sector in Co. Leitrim in Quarter 3, 2016, and which were registered with the Residential Tenancies Board (RTB) was €449. This was up €16 when compared to the average rent in Q2, 2016, when the amount was €433, and was up €33 when compared to a year earlier, in Q3, 2015.
The data comes from the RTB’s 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 30,260 new tenancies which commenced in Q3 (July, August & September) this year, and which were registered with the RTB. It reflects the actual rents being paid, according to the RTB’s records, as distinct from the asking or advertised rent.
Nationally, monthly rents grew by 2.3%, marginally slower than Q2, when they increased by 3.5%. Overall, the data show that rents for houses are increasing at a slightly faster rate than rents for apartments, at 2.6% compared to 1.8%. In Dublin, the pace of growth has slowed somewhat compared to Q2, with rents increasing by 0.6%. The slowdown appears to be driven by a marginal fall in Dublin house rents of 0.6%, while rents for Dublin apartments increased by 1.5% over the same period. This is the first decline in quarterly Dublin house rents since Q1 2013.
Interestingly, the pace of growth outside Dublin picked up in Q3, with overall rents outside Dublin increased by 3.6%. This consisted of a 3.6% increase in house rents while the comparable increase in apartments was broadly similar at 3.4%. This was the fastest rate of growth among all categories in Q3.
Overall, Dublin rents are now 5% higher than at their previous peak in 2007, while rents outside Dublin are now 7.3% of their peak in that year.
On an annual basis, rents nationally were 8.6% higher than in Q3, 2015; up from €897 to €973. Nationally, rents for houses were 7.4% higher annually in Q3 of this year (up from €900 to €967), while apartment rents were 9.9% higher than in the same quarter of 2015 (up from €925 to €1,017.
Annual growth in the Dublin market was 7.1% (up from €1,285 to €1,375) between Q3 2015 and Q3 2016. Dublin house rents were up by 3.3% (€1,431 to €1,478) and Dublin apartment rents were higher by 9.6% (€1,275 to €1,397).Annual growth in rents for the market outside Dublin recorded increases of 9.7% when compared to Q3, 2015; up from €705 to €773. Again the performance differed by property type. Monthly rent for houses outside Dublin increased by 8.8% (from €735 to €800), while apartments outside Dublin experienced an increase of 11.1% (€666 up to €740).
Commenting on the latest Rent Index findings, the Director of the RTB, Ms. Rosalind Carroll, said: “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. The market is still volatile and therefore it is difficult to identify patterns.”
“In Q2, rents in Dublin went up by 4.4%, whereas this quarter we have seen much reduced growth of just 0.6% But taking the Q3 2016 data, based as it is on actual rents being paid, as opposed to asking rents, it does appear that the rate of growth has slowed, and in particular that the rate of rental growth in Dublin appears to have slowed. What is also significant is that the rents outside of Dublin are now rising more rapidly than Dublin rents. Annually rents outside of Dublin grew by 9.7% compared to 7.1% in the Dublin market. It should be noted though that while rents outside of Dublin are accelerating, they are still 7.3% behind the peak levels of 2007”.
Ms Carroll said the RTB now has a total of 324,222 tenancies registered, representing 174,158 landlords and 705,183occupants.
The RTB website www.rtb.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.
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.
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