RTB Rent Index shows clear and consistent drop in the growth rate for the third quarter in 2020
- The Q3 2020 RTB Rent Index shows the national year-on-year growth rate has remained below 2% for two consecutive quarters for the first time since late 2012.
- On an annual basis, rents grew nationally by 1.4% in Q3 2020 which is marginally lower than the growth rate in Q2 2020.
- The national standardised average rent stood at €1,256 in Q3 2020, a rise of 2.5% (or €31 per month) on the previous quarter.
- The standardised average rent in Dublin City declined year on year by 1.0% (€17 per month) in Q3 2020 to €1,690 per month.
The Residential Tenancies Board (RTB) has published the quarterly Rent Index for the July to September period (Q3) of 2020. The annual national standardised average rent increased by 1.4% (or €17 per month), going from €1,239 in Q3 2019 to €1,256 in Q3 2020. This is the lowest national annual growth rate since Q4 2012. The county with the highest standardised average rent in Q3 2020 was Dublin (€1,758 per month), and the county with the lowest monthly rents was Leitrim (€600 per month). At the Local Electoral Area (LEA) level, the LEA with the highest standardised average rent was Stillorgan in County Dublin (€2,319 per month) and the lowest was Carndonagh in County Donegal (€498 per month). New tenancies continued to account for approximately fourfifths of all registrations. In Q3 2020, 82.3% of registered tenancies were new registrations, with 17.7% being renewals.
Padraig McGoldrick, Interim Director of the RTB, commented on the latest Rent Index findings; “The effect of Covid-19 on the rental sector can be seen once again in the third quarter of 2020. There is an ongoing moderation in rental price growth which can be seen throughout the country, most notably in Dublin and the Greater Dublin Area. We know Covid-19 has impacted on both landlords and tenants and the RTB are working to support both by ensuring that information is available on new rental legislation and supports are available for those affected. Further measures and the extension of temporary protections for those facing rent arrears have just been introduced by Government. If rent arrears arise in a tenancy it can be a distressing and difficult time for both landlords and tenants; The RTB is working in collaboration with MABS to assist tenants in accessing their services. Free telephone mediation services are also available to assist in sustaining tenancies. We continue to encourage those who are experiencing issues in their tenancies to visit our website [www.rtb.ie] for information on how to resolve issues”.
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 25,193 private 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. This is the highest number of private tenancy registrations in a single quarter since Q3 2018.
The presence of public health restrictions on economic and social life in the second quarter of 2020 likely affected the balance of registrations between the second and third quarter as households may have put off registrations until the economy reopened in the third quarter.
In Q3 2020, eight counties had standardised average rents above €1,000 euros per month; Cork, Dublin, Galway, Kildare, Limerick, Louth, Meath, and Wicklow. This is the first time that standardised average rents in Limerick exceeded €1,000 per month. Year-on-year the fastest growing rent in the third quarter of 2020, by county, was seen in County Waterford (7.9%) and the county with the largest year-on-year decline in rents was Sligo (-6.5%).
Extension of temporary protections for tenants facing rent arrears due to Covid-19
The Planning and Development and Residential Tenancies Act has just been enacted and extends certain provisions in relation to notices of termination served on tenants for failure to pay rent due, prohibiting increases in rents on those tenancies facing rent arrears due to Covid-19 during the period from 11 January 2021 to 12 April 2021. The aim of these provisions is to continue but modify the operation of the temporary protections to tenants under the Residential Tenancies and Valuation Act 2020 enacted in early August. The proposed new provisions will operate, subject to certain conditions to provide protections for those tenants who are facing rent arrears and, as a result, are at risk of losing their tenancy due to Covid-19.
Anyone seeking further information on these new measures or for anyone experiencing issues in their tenancies please 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. This is available to help both landlords and tenants resolve a dispute in a mutually beneficial manner and does not require people to leave their home.
The full Q3 2020 RTB Rent Index Report and supporting infographics, can be downloaded below: