Rents for new properties increase by over 8 per cent nationally

New rents increased nationally by 8.2% in the second quarter of 2022 over the same period in 2021, latest figures show. 

In Q2 2022, average rents for new tenancies in Dublin were €2,011 per month and outside Dublin (non-Dublin) averaged €1,130 per month.

The Residential Tenancies Board (RTB) has published the Q2 2022 Rent Index report for the period of April to June 2022.

The purpose of the Rent Index is to measure rental price developments faced by those taking up new tenancies in the private rental sector. 

The RTB says it is important to note that the Rent Index is not designed to provide a measure of the rents being paid by existing tenants. 

The national standardised average monthly rent in new tenancies was €1,464 in Q2 2022, which is an increase of €9 compared to Q1 2022. 

This Index analysed 12,701 new tenancy registrations, which is a decrease of 16% on the number of new tenancies included in the Q2 2021 Rent Index (15,048). 

The standardised average rent in new tenancies in the Greater Dublin Area (GDA) stood at €1,438 in Q2 2022 while it was €1,091 outside the GDA. 

Independently analysed by the Economic and Social Research Institute (ESRI), the RTB Rent Index report is based on the total number of private tenancies newly registered with RTB each quarter. The Index provides rental indicators based on actual rents paid for new tenancies in the private rental sector in Ireland. 

Nationally, the Q2 2022 Rent Index shows that the standardised average rent in newly registered tenancies was €1,464 per month, which is an increase of €9 compared to Q1 2022, which stood at €1,455. The quarterly growth rate represents a 0.6% increase. On a yearly basis, rents in these newly registered tenancies increased by 8.2%.

In Q2 2022, the standardised average rent in new tenancies for houses in Ireland stood at €1,457 per month, which is an increase of 1.4% on Q1 2022 and a rise of 8.4% year-on-year. The standardised average rent in new tenancies for apartments stood at €1,497 per month in Q2 2022, which is an increase of 0.3% on Q1 2022, and an increase of 8.5% on Q2 2021. 

In the second quarter of 2022, the level of standardised average rents in new tenancies in Dublin stood at €2,011 per month compared to €1,130 per month outside Dublin (non-Dublin).

The standardised average rent in new tenancies in the Greater Dublin Area (GDA) stood at €1,438 in Q2 2022 while it was €1,091 outside the GDA. Year-on-year price increases in rents for new tenancies were lowest at 0.4% in the GDA and highest at 8.8% in Dublin. Year-on-year increases in rents for new tenancies was 8.3% for outside the GDA. 

The standardised average rent in new tenancies for houses in Q2 2022 was highest at €2,253 per month in Dublin and lowest at €1,125 per month outside the GDA. The standardised average rent in new tenancies for apartments in Q2 2022 was highest at €1,979 per month in Dublin and lowest at €1,059 per month outside the GDA. The lowest annual growth rates across the regions, for both houses and apartments, were recorded in the GDA, at +3% and -2.5%, respectively. 

The highest standardised average rent in new tenancies for Q2 2022 was in Dublin at €2,011 per month while the lowest monthly rents were in Donegal, where the standardised average rent in new tenancies stood at €783 per month. 

Fourteen counties have standardised average rents in new tenancies above €1,000 per month in Q2 2022: Carlow, Cork, Dublin, Galway, Kildare, Kilkenny, Laois, Limerick, Louth, Meath, Waterford, Westmeath, Wexford, and Wicklow.  

The lowest yearly growth in the standardised average rent for new tenancies in Q2 2022 was in Wicklow where rents fell by 2%. Kildare had the second lowest yearly growth rate, with rents falling by 1.1%.

The county with the fastest growing standardised average rent in new tenancies in Q2 2022 was Leitrim which reported 20% year-on-year growth. Fourteen counties had a yearly growth rate in new tenancy rents above 10% in Q2 2022.   

Niall Byrne, RTB Director, commenting on the release of the RTB Q2 2022 Rent Index said:  "The Q2 2022 Rent Index Report shows us that the national rent level for new tenancies across the country has continued to rise. We also see a continued decrease in the number of tenancies registered with the RTB in the quarter. These results are likely due to a mixture of factors including the continued limited supply of rental accommodation. It is important to state that these results are for new tenancies only and therefore these insights relate to only a small part of the private rental sector in Ireland". 

"Over the last 12 months, there have been some important changes for the RTB and for the sector. With the introduction of annual registration on 4 April 2022, and of our new tenancy registration system in November last year, the data analysis and reporting capabilities of the RTB will be improving significantly as we move into 2023.

"We acknowledge that the new registration system has created difficulties for some landlords and agents, and we are working hard to address these. As we move towards the completion of this first cycle of annual registration in April next year, we remain confident that annual registration will provide the RTB with much greater visibility on rents for both existing and new tenancies. 

"This expanded data will allow us to provide new insights and improved information to tenants, landlords and the wider public during 2023 while also providing enhanced data to inform the development of policy for the residential rental sector," Mr Byrne said.