Graph showing Q1, Q2, Q3, Q4 along X-axis to represent RTB/ERSI Rent Index

RTB/ESRI Q4 2020 Rent Index

The RTB/ESRI Q4 2020 Report produced by the Residential Tenancies Board and the Economic and Social Research Institute tracks price developments in the Irish rental housing market.  This Report is based on actual rents paid on 19,287 private tenancies registered with the RTB in Q4 2020, made up of homes new to the rental sector, new tenancies in existing housing stock and renewals of existing tenancies.

Since the onset of the Covid-19 pandemic, the introduction and easing of restrictions around rental price growth in line with public health measures is likely to have had an effect on trends throughout 2020.

In Q4 2020, 82.8 per cent of registered tenancies were new registrations with 17.2 per cent being renewals.  Dublin and the Greater Dublin Area excluding Dublin (GDA) account for over half of all tenancy agreements, 53.1 per cent, with 46.9 per cent of tenancies relating to the Rest of the Country. Since 2013 the gap between the number of new and renewal tenancies has generally been narrowing, as renters appear more likely to remain in their existing accommodation.

As of Q4 2020, rents in Dublin were substantially higher than those outside Dublin at €1,745 per month as compared to €955 per month. The standardised average rent in the GDA excluding Dublin stood at €1,307, while it was €904 outside the GDA as of Q4 2020.

The national standardised average rent stood at €1,256 in Q4 2020, equal to its level in the previous quarter. On an annualised basis, rents grew by 2.7 per cent in the fourth quarter of 2020. This growth rate is higher than that of the previous quarter. Q4 2020 showed a decline in the number of tenancies registered with the RTB compared to the previous quarter.

The contrast between Dublin and the Rest of the Country in Q4 2020 is very clear, with 60.8 per cent of rents over €1,500 in the capital, and another 30.0 per cent between €1,001 and €1,500. In the Rest of the Country, the largest share of rents corresponds to the €501 to €1,000 category at 56.0 per cent while only 7.5 per cent are above €1,500. While it is understandable that rents are higher in Dublin due to higher incomes and the higher level of demand, it is noteworthy that, in Q4 2020, only about 9.2 per cent of rental contracts were agreed at €1,000 or less. This is a low proportion when compared to the equivalent figure of 64.1 per cent outside of Dublin.

The standardised average rent for houses stood at €1,219 per month in Q4 2020, a marginal rise of 0.6 per cent on the previous quarter and a rise of 3.0 per cent year-on-year. The standardised average rent for apartments stood at €1,306 per month in Q4 2020, a decrease of 0.6 per cent on the previous quarter but a rise of 2.1 per cent year-on-year.

The economic context determines the drivers of rental inflation in Ireland. For now, economic developments remain tied completely to Covid-19.  The period Q4 2020 was a quarter in which the Irish economy experienced a lockdown followed by a reopening, followed by further public health restrictions introduced in late December and January. Recent research has indicated that households in the private rental sector suffered a greater economic hit relative to other tenures during the March to June lockdown due to a higher concentration of employment in sectors most severely impacted by the pandemic. Longer restrictions will therefore likely have a disproportionate impact on households in the rental sector.

Graph showing Q1, Q2, Q3, Q4 along X-axis to represent RTB/ERSI Rent Index

RTB/ESRI Q3 2020 Rent Index

The RTB/ESRI Q3 2020 Report produced by the Residential Tenancies Board and the Economic and Social Research Institute tracks price developments in the Irish rental housing market.  This Report is based on actual rents paid on 25,193 private tenancies registered with the RTB in Q3 2020, 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 moderation in rental price growth that has occurred since the onset of the Covid-19 pandemic continued in the third quarter of 2020. The drop in rental price growth since the onset of the pandemic has been greater in Dublin than elsewhere which reflects the differing impact of the Covid-19 economic shock on both the demand and supply sides of the market in the short term.

In Q3 2020, 82.3 per cent of registered tenancies were new registrations with the 17.7 per cent being renewals.  Dublin and the Greater Dublin Area excluding Dublin (GDA) account for just over half of all tenancy agreements; County Dublin accounted for 45.5 per cent of tenancies in Q3 2020, the GDA accounted for a further 7.6 per cent with 46.9 per cent of tenancies relating to the Rest of the Country.

As of Q3 2020, rents in Dublin are nearly twice the level outside Dublin at €1,758 per month as compared to €965 per month. The standardised average rent in the GDA stood at €1,254 as of Q3 2020. 

The national standardised average rent stood at €1,256 in Q3 2020, a rise of 2.5 per cent (or €31 per month) on the previous quarter. On an annualised basis, rents grew by 1.4 per cent in the third quarter of 2020. This growth rate is down marginally on the previous quarter and is a continuation of the drop in rental inflation that has occurred since the Covid-19 pandemic began.

The contrast between Dublin and the Rest of the Country in Q3 2020 is very clear, with 63.2 per cent of rents over €1,500 in the capital, and another 28.0 per cent between €1,001 and €1,500. In the Rest of the Country, the largest share of rents corresponds to the €501 to €1,000 category at 54.0 per cent while only 10.8 per cent are above €1,500. While it is understandable that rents are higher in Dublin due to higher incomes and the higher level of demand, it is noteworthy that, in Q3 2020, only about 8.8 per cent of rental contracts were agreed at €1,000 or less.

The standardised average rent for houses stood at €1,213 per month in Q3 2020, a rise of 2.5 per cent (or €30 euro per month) on the previous quarter and a marginal rise of 0.4 per cent year-on-year. The standardised average rent for apartments stood at €1,311 per month in Q3 2020, a rise of 2.4 per cent on the previous quarter and a rise of 2.5 per cent year-on-year. The inflation rate for apartments is significantly higher than for houses on a year-on-year basis.

The economic context determines the drivers of rental inflation in Ireland. For now, economic developments are tied completely to Covid-19.  The loosening of measures in Q3 2020 saw recovery and increased economic activity. The resurgence of the virus in September and October 2020, and the increased public health restrictions has brought with it an increase in the unemployment rate and this is likely to depress spending activity in the latter part of 2020.

Graph showing Q1, Q2, Q3, Q4 along X-axis to represent RTB/ERSI Rent Index

RTB/ESRI Q1 2020 Rent Index

The RTB/ESRI Report produced by the Residential Tenancies Board (RTB) and the Economic and Social Research Institute (ESRI) provides rental indicators (the Rent Index) generated to track price developments in the Irish rental property market. 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.  While trends in the standardised average rent provide an understanding of how prices are developing in the rental sector, the Report also provides an insight into the composition of the market, the type of properties rented,  the length of tenancies and other factors. The data covered in the Q1 2020 Report predates the introduction of public health and emergency tenant protection measures to manage the Covid-19 pandemic.

The Dublin rental market is the largest in the country accounting for 40.8 per cent of the tenancies that were registered with the RTB.  The GDA excluding Dublin accounted for a further 9.0 per cent with 50.2 per cent of tenancies relating to the rest of the country.

Overall national trends show that the year-on-year growth rate of the national standardised average rent was 5.4 per cent higher in Q1 2020, compared to Q4 2019 while the average rent increased from €1,221 to €1,231 in Q1 2020.

Variations with standardised average rent were evident across the country with rents for Dublin dwellings being significantly higher than those observed elsewhere. The highest standardised average rents were in Dublin at €1,735, the lowest standardised average rent was Leitrim at €550 per month.

Apartments and flats represent a higher share of properties in Dublin when compared to the rest of the country.  In total, 71.9 per cent of rental contracts in Dublin in Q1 2020 were for flat or apartment type accommodation.

The national standardised average rent for apartments continued to increase; 1-bedroom increased by 4.8 per cent to €1,181, 2-bedroom apartments increased by 5.4 per cent to €1,309 and apartments with 3 or more bedrooms increased by 3.7 per cent to €1,454 when compared to Q1 2019. The national standardised average rent for houses also increased; 1-bedroom house was €1,053, 2-bedroom house increased to €1,134 while 3-bedroom house increased to €1,159 nationally.

Most tenancy agreements last between 10 and 12 months. As of Q1 2020, 32.8 per cent of registered tenancies had a duration of greater than a year.  Over the last number of quarters, there has been a general increase in tenancies of greater than 12 months. The trend towards a higher share of properties with over 12 months contract duration is consistent with the increased importance of the private rented sector.

Not all properties in a Rent Pressure Zone (RPZ) are subject to the 4 per cent cap on annual increases as there are certain qualifying conditions where a property is treated as exempt.  In Q1 2020, the RTB received a total of 221 exemption notifications from landlords. It is expected over time, as these regulations become more embedded in the sector, the RTB will receive more Exemption Notifications as landlords choose to invest in upgrading the rental stock.

In recent years, house purchasing affordability factors and increased demand have led to the upward pressure on rents.  While the Covid-19 crisis has presented new challenges for both landlords and tenants alike, rental price inflation is showing to have moderated since the pandemic began.

Graph showing Q1, Q2, Q3, Q4 along X-axis to represent RTB/ERSI Rent Index

RTB/ESRI Q4 2019 Rent Index

The RTB/ESRI Report produced by the Residential Tenancies Board (RTB) and the Economic and Social Research Institute (ESRI) provides rental indicators (the Rent Index) generated to track price developments in the Irish market.

The report was produced prior to the emergency period that has been brought about by the COVID-19 pandemic and the full impact on the rental sector has not yet been realised.

The year-on-year growth rate of the national standardised average rent was 6.4 per cent in Q4 2019. Compared to Q3 2019, the national standardised average rent fell from €1,241 to €1,226 in Q4 2019.

The RTB confirms that the standardised average national rent for houses stood at €1,187 in Q4 2019 which was an increase of €75 compared to Q4 2018. The standardised average rent for apartments also increased over this period, up by €71 to €1,283 in Q4 2019. On a quarterly basis, the standardised national rent for houses decreased by 2.3 per cent compared to Q3 2019. The quarterly growth rate for apartments was 0.3 per cent in Q4 2019, down 1.3 percentage points from the growth rate in the previous quarter. On a year-on-year basis, rents for houses increased by 6.7 per cent in Q4 2019, 1.7 percentage points lower than the annual growth rate in Q3 2019. Apartment rent prices increased by 5.9 per cent in Q4 2019 over the same period which represents an increase of 0.5 percentage points relative to Q3 2019.

Most of the renters concentrate in the large population centres near jobs, education and amenities, price pressures are greatest in these areas. As Dublin accounts for the largest share of economic activity and employment, in Q4 2019, 41.9 per cent of total tenancies that were registered were registered in Dublin. With 9.6 per cent of tenancies agreed at less than €1,000 per month compared to two thirds elsewhere, this shows acute price pressures of the rental market in the capital. The standardised average rent for Dublin stood at €1,716, up from €1,634 in the same quarter the previous year. This represents a 5 per cent annual increase in rent in the capital.

The counties outside the GDA show the standardised average rent stood at €872 in Q4 2019, up from €809 the previous year. The Index for the rest of the country stood at 114 in Q4 2019, a decrease of 2 index points in comparison to Q3 2019. Rent outside the GDA in Q4 2019 was 2.2 per cent lower than the previous quarter. On a year-on-year basis, rents outside the GDA were up by 7.8 per cent.

In recent years, several factors have put considerable pressure on rental prices. First, excess demand and credit access together with affordability issues in the owner-occupier housing market have led to a large number of households remaining in the rental sector. Secondly ongoing supply shortages both for rent and sale are a factor in continued rent price growth despite the construction industry seeing a rapid recovery.

A significant increase in the number of properties available for sale and rent, is necessary, to temper the rapid and continued growth in rent prices.

Graph showing Q1, Q2, Q3, Q4 along X-axis to represent RTB/ERSI Rent Index

RTB/ESRI Q3 2019 Rent Index

The RTB/ESRI Report produced by the Residential Tenancies Board (RTB) and the Economic and Social Research Institute (ESRI) provides rental indicators (the Rent Index) generated to track price developments in the Irish market.

According to the research, despite the increase in housing completions recently, the level of supply remains significantly below the level of structural demand.

The year-on-year growth rate of the national standardised average rent increased to 8.2 per cent in Q3 2019. The quarter-on-quarter growth of rent prices also increased to 3.3 per cent in Q3 2019, indicating a further strengthening in the quarterly inflation.

The RTB confirms that the standardised average national rent for houses stood at €1,221 in Q3 2019 which was an increase of €94 compared to Q3 2018. The standardised average rent for apartments also increased over this period, up by €87 to €1,275 in Q3 2019. On a quarterly basis, the standardised national rent for both houses and apartments increased compared to Q2 2019. The growth rate for houses increased again to 4.7 per cent in Q3 2019, up 1.1 per cent from the previous quarter. The quarter-on-quarter growth rate for apartments declined marginally from the previous quarter to 1.8 per cent. On a year-on-year basis, rents for houses increased by 8.3 per cent in Q3 2019, 1 percentage point higher than the annual growth rate in Q2 2019. Apartment rent prices increased by 7.4 per cent in Q3 2019 over the same period which represents an increase of 1.7 percentage points relative to Q2 2019.

Most of the renters concentrate in the large population centres near jobs, education and amenities, price pressures are greatest in these areas. As Dublin accounts for the largest share of economic activity and employment, in Q3 2019, it accounted for just under 2 in every 5 tenancies that were registered with the RTB. With just under 9 per cent of tenancies agreed at less than €1,000 per month compared to 62 per cent elsewhere, this shows acute price pressures of the rental market in the capital. The standardised average rent for Dublin stood at €1,762, up from €1,652 in the same quarter the previous year. This represents a 6.6 per cent annual increase in rent in the capital.

The counties outside the GDA show the standardised average rent stood at €903 in Q3 2019, up from €827 the previous year. The Index for the rest of the country stood at 117 in Q3 2019, an increase of 5 index points in comparison to Q2 2019. The quarter-on-quarter growth rate for outside the GDA increased from 2.2 per cent in Q2 2019 to 5.1 per cent in Q3 2019. On a year-on-year basis, rents outside the GDA were up by 9.2 per cent.

As the housing market, including the PRS, is influenced by the state of the economy, interest rates, real income, changes in population size and investor incentives, house prices and rents are largely determined by the available supply.  Ongoing supply shortages are a factor in continued rent price growth despite the construction industry seeing a rapid recovery.

A significant increase in the number of properties available for sale and rent, is necessary, to temper the rapid and continued growth in rent prices.