The RTB Q4 2017 Rent Index, for all new tenancies, shows nationally the annual growth rate of rent was 6.4%, which has slowed from 8.0% in the previous quarter.
While rents have increased, the rate of growth has slowed in Dublin, Cork and nationally.
National standardised average rent for new tenancies was €1,054 (up €12 from Q3).
In Dublin the average rent stood at €1,511; in the Greater Dublin Area (Meath, Wicklow and Kildare) at €1,103; outside of the Greater Dublin Area was €793.
Q3 to Q4 changes in average rents nationally of 1.1%, in Dublin 1.1%; Greater Dublin Area (excl. Dublin) 3.3%, Outside Greater Dublin Area -1.3%.
According to the Residential Tenancies Board (RTB), in the October-December period of 2017 (Q4) the standardised national average rent for new tenancies was €1,054 per month, up from €990 one year earlier. In percentage terms, nationally rents grew by 6.4% over the year to Q4, which brings the growth rate down to levels seen in early 2017. This represents a slowdown relative to Q3 2017 which was 8.0%.
The data is reported in the RTB’s Quarter 4 2017 Rent Index Report which was published today. The report is produced in conjunction with the Economic and Social Research Institute and is based on the actual rents being paid in over 17,700 new tenancies registered with the RTB during the quarter.
Rents in Dublin continue to increase with average rent of €1,511 (up from €1,436 one year earlier). The annualised growth rate of rent in Dublin, stood at 5.2%, which represents a decline from 8% in Q3 2017. Significantly the annual growth rate for Dublin is the lowest growth rate since 2013. From Q3 to Q4 2017 in Dublin, rents increased from €1,494 to €1,511, however, the quarterly growth rate also slowed from 2.3% in Q3 to 1.1%.
In the Greater Dublin Area (excluding Dublin) standardised average rent stood at €1,103 (compared to €1,026 year on year). This area has shown an increased growth rate from 4.8% in Q3 2017 to 7.5%, the highest since Q4 2016.
Outside the Greater Dublin Area (GDA) average rent was €793 up from €740 year on year and rents were up 7.1% which is a small decrease from 7.9% year on year growth in Q3 2017.
Other Key points from the RTB Rent Index Q4 Report
- In Q4 2017, there were four counties where the average rent exceeded €1,000 per month (Dublin, Kildare, Meath and Wicklow).
Nationally the standardised average rent for new tenancies for houses was €1,055 per month, up from €991 a year earlier; apartments €1,152 up from €1,094 per month.
The Index contains a new cities model showing that rents are highest in cities (Dublin; Cork; Galway; Waterford; and Limerick). Growth rates are mixed: Cork (5.2%) and Dublin city (5.9%) have lower annualised growth rates than Galway (8.5%), Limerick (10%), and Waterford (7.4%) in Q4 2017.
Commenting on the Q4 Index, RTB Director Rosalind Carroll said;
“The continued strong economic and demographic growth combined with restricted supply continues to put pressure on the rental market and those seeking a place to live. We see that, in the 6.4% annual increase in new rents to the end of Q4 2017. However, this rate of increase has slowed from the previous quarter and the last time the annual growth rate in new rents was below this level was in Q1 2014.
"The report shows that in the Dublin rental market rents continue to increase (from €1,494 in Q3 to €1,511), however, the quarter on quarter growth rate at 1.1% has slowed compared to the previous quarters. Within the figures published today we can see some sense of the pressure on rents in Dublin rippling out to the wider GDA while outside the GDA new rents actually fell in Q4”.
“Finally, it is worth noting that the Rent Index is based on new tenancies registered and therefore does not reflect what is happening within existing tenancies. Some of the new tenancies will be properties new to the rental market (i.e. not let in the previous 24 months) and therefore are exempt from the 4% rent restrictions of the Rent Pressure Zones (RPZs). Further reports and data will provide additional insight in to the impact of the RPZs and their impact on the rental market.”