The Residential Tenancies Board has released its latest rent index for the second quarter of 2017. The report is produced in conjunction with the Economic and Social Research Institute (ESRI) and is the most accurate and authoritative rent report of its kind on the private accommodation sector in Ireland because it is based on the actual rents being paid for over 19,000 new tenancies registered with the RTB during the quarter.
The index shows that nationally, private sector rents grew 6.6% in the year end to the end of June this year. However, the rate of increase in the second quarter was marginally slower than in Quarter 1. The standardised average national rent stood at €1,017 per month in the second quarter, 2017 – up by €63 – compared to the same period last year, when it was €954.
While the quarter-on-quarter growth was relatively flat in the first quarter, 2017, the pace of growth has accelerated in the second quarter. Standardised rents increased 2.9% quarter-on-quarter in the second quarter, 2017, up from 0.04% in the first quarter.
Not surprisingly, demand for rented accommodation in Dublin is very high as evidenced by rents in the capital now being 10.8% above their previous peak in the fourth quarter, 2007. Overall rents in Dublin increased in the second quarter, 2017 by 3.3% compared to the previous quarter. Rents for Dublin apartments are now 14.7% above the previous peak of the fourth quarter, 2007, while outside Dublin rents are 3.8% below their 2007 peak levels.
On an annual basis, rents continued to grow, increasing by 5.8% in Dublin. In second quarter, 2017, there was some evidence of a moderation in the pace of expansion for Dublin houses, continuing the trend seen in the first quarter. Also for Dublin apartments, the year-on-year growth rate dropped from 7.4% to 6.8% in the second quarter.
Outside Dublin, rents for houses and apartments continued to grow, both on a quarterly basis and an annual basis. The quarter-on-quarter growth rate overall was 3.1% in private sector rents, representing an increase from 1.3% in the first quarter, 2017. Annual growth rates also appeared to be consistent, at 8%, in line with the previous quarter. Behind the headline figure, there had been acceleration in apartment rental price growth outside Dublin on an annualised basis, increasing to 9.3% year-on-year.
Commenting on the report, the Director of the RTB, Ms. Rosalind Carroll said, "The findings for the second quarter of this year are a further reflection of the ongoing pressure in the rental sector as demand continues to outstrip supply, and with two further areas, Drogheda and Greystones, meeting the RPZ (Rent Pressure Zone) criteria. These results reflect the second quarter since RPZs were first introduced. It is still too early to identify trends from these results, particularly in such a volatile market with restricted supply."
Source: www.businessworld.ie
