The RTB Q2 2021 Report produced by the Residential Tenancies Board (RTB) and the Economic and Social Research Institute (ESRI) tracks price developments in the Irish rented housing market. All private residential landlords, Approved Housing Bodies (AHB) and landlords of Student Specific Accommodation (SSA) register their tenancies with the RTB. The current Report is based on rents paid on 13,844 private tenancies registered with the RTB in Q2 2021 compared to the 16,085 tenancies registered in Q1 2021.
The RTB’s data shows a total number of 297,837 active tenancies and 165,736 landlords as being registered at end 2020. Of these, 86 per cent of landlords own one to two properties but provide just 53 per cent of the private tenancies registered. According to the RTB, the private rented sector landscape is changing with large landlords having clear intentions to expand their portfolios and 26 per cent of small landlords planning to sell a rental property in the next five years.
The standardised average rent published on a quarterly basis covers all new registered tenancies within that quarter which are submitted to the RTB and excludes all existing registered agreements. The current Report is based on rents paid on 13,844 private tenancies registered with the RTB in Q2 2021 compared to the 16,085 tenancies registered in Q1 2021.
Q1 2021 saw unemployment remaining high, falling to 25.5 per cent in March, while the retail sales index recovered in February 2021 (to 122.7), returning to similar levels prior to the onset of the pandemic. Coinciding with the easing of public health restrictions combined with the vaccine roll-out, Q2 2021 is characterised by strong economic activity, with unemployment falling rapidly from 23 per cent in April to 16.2 per cent by June 2021.
The number of tenancies registered with the RTB in Q2 2021 was 13,884 and 16,085 in Q1. This represents a 13.6 per cent decline in the number of tenancies registered between the first and second quarter of 2021.
Due to the availability of jobs and amenities within urban areas, a large proportion of the population is concentrated in cities and as a result, housing demand is highest in these areas. Over half (58 per cent) of all tenancy agreements registered were in Dublin and the Greater Dublin Area (GDA) with 61.6 per cent of the registered tenancies being for apartments or flats. In Dublin, 77.6 per cent of registered tenancies were for apartments, 47.6 per cent in GDA and 44.9 per cent in the rest of the county.
While rents in Dublin City were 1.2 per cent higher in Q2 2021 compared to Q1 2021, the year-on-year growth rates in Cork City and Galway City were 6.3 per cent and 9.2 per cent respectively. In Q2 2021, Dublin City monthly rent averaged €1,775, Galway City €1,355, Cork City €1,344 and €1,196 in Limerick City.
As of Q2 2021 the standardised average rent in the GDA was at €1,397 and €1,007 outside the GDA. Year-on-year price inflation was lowest at 4.4 per cent in the Dublin area and highest at 10.8 per cent outside the GDA.
The standardised average rent for houses in Dublin - €2,105 per month – is more than double the standardised house rent - €1,031 per month - outside the GDA. Year-on-year house rents grew at 7.3 per cent in Dublin and at 11.5 per cent outside Dublin. Annual rental price inflation was strongest outside the GDA where houses grew at 11.6 per cent year-on-year.
The standardised average rent for apartments in Dublin in Q2 2021 - €1,798 per month – is more than double the standardised apartment rent - €982 per month – outside the GDA. Year-on-year apartment rents grew by 3.9 per cent in Dublin and by 8.7 per cent outside Dublin. In Q2 2021, apartment rental prices outside the GDA experienced the strongest annual growth with an increase of 9.4 per cent year-on-year.
For both houses and apartments, year-on-year growth was strongest outside the GDA. On an annualised basis, the county with the fastest growing rents in Q2 2021 was Leitrim at 17.3 per cent year-on-year growth, while Laois, Sligo, Wicklow, Mayo, Offaly, Kilkenny, Longford and Clare all had annualised growth rates above 10 per cent.