RTB Rent Index shows quarterly rent levels moderated across the country amid Covid-19 crisis, with 0.0% annual change in Dublin
- The Q2 2020 RTB Rent Index shows that rents fell nationally between Q1 and Q2 2020 to stand at €1,226 and there was a quarterly drop of 0.6% on rents in the previous quarter.
- The annual growth rate of rents nationally at 1.8% is at the lowest rate since 2012.
- The standardised average rent for Dublin was €1,709. This represents 0.0% growth since Q2 2019 – suggesting moderation is taking effect.
- Quarterly, rent levels have moderated across the country, with 13 counties having lower standardised average rents in Q2 2020 than Q1 2020.
- Renewal tenancies now account for over one-in-five tenancies which is an increase of more than three percentage points relative to Q1 2020.
29 September 2020: The Residential Tenancies Board (RTB) has published the quarterly Rent Index for the April to June period (Q2) of 2020. The national standardised average rent decreased by 0.6% from €1,233.58 to €1,226.20 in Q2 2020. At 1.8%, the year-on-year growth rate of the national standardised average rent in Q2 2020 was at its lowest level since 2012.
The standardised average rent in Dublin now stands at €1,709 and €928 outside of Dublin. Compared to the previous quarter, rents outside Dublin increased by 0.3%, while they decreased by 1.5% in Dublin. On an annual basis, Dublin experienced no growth, while rents outside Dublin grew by 3.4%.
Padraig McGoldrick, Interim Director of the RTB, commented on the latest Rent Index findings;
“It is clear that the COVID-19 pandemic has significantly impacted the rental sector – annual growth has moderated and rent levels have slowed compared to Q1 2020.
There are considerable changes across the country with the Greater Dublin Area (excluding Dublin) seeing the greatest adjustment in prices with rents falling by 3.7% between Q1 and Q2 and Dublin experiencing no growth on an annualised basis. We’ve also seen further moderation with 13 counties having lower rents in Q2 2020 than Q1 2020”
The RTB Rent Index, which is compiled in conjunction with the Economic and Social Research Institute (ESRI), is the authoritative report on the Irish rental market. It is based on actual rents paid on 16,857 tenancies registered with the RTB in the quarter, which is made up of homes new to the rental sector, new tenancies in existing housing stock and renewals of existing tenancies.
Annual growth has moderated in most counties and the standardised average rent in 13 counties was lower in Q2 2020 compared to Q1 2020. There was a sizeable fall in the number of tenancies registered with the RTB. Out of the 26 counties, 21 experienced a decline in the number of tenancies registered between Q1 and Q2 2020.
There were seven counties where the standardised average rent exceeded €1,000 per month in Q2 2020 – Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow – while Limerick had a standardised average rent of €988. The high rental levels in these areas relative to other counties reflects the concentration of demand close to the country’s largest employment hubs.
The highest standardised average rent was in Dublin at €1,709. The county with the lowest standardised average rent was Leitrim at €599 per month.
Conor O'Toole, Senior Research Officer at the Economic and Social Research Institute added:
“The economic shock associated with the pandemic has been the sharpest and most rapid in living memory. These economic adjustments are beginning to feed through into the rental sector with rental inflation moderating across the country. The drop in inflationary pressures has been strongest in the Dublin area which is the country’s largest rental market. It is likely that continued downward pressure will be exerted on rents in the short term as the economy continues to struggle under COVID-19 conditions.”
For anyone experiencing issues in their tenancies visit www.rtb.ie for information on how to resolve issues and, if necessary, use the RTB’s free telephone mediation service on 0818 30 30 37 which helps landlords and tenants resolve a dispute in a mutually beneficial manner, and does not require people to leave their home.
The full Q2 2020 RTB Rent Index Report and supporting info-graphics, can be downloaded here: