Rent up by 8.1% annually for new tenancies

The standardised average rent has increased by 8.1% for new tenancies nationally and by 5.9% for existing tenancies between Q1 2023 and Q1 2024.

The findings have been revealed in data published by the Residential Tenancies Board in partnership with the ESRI and form part of the quarterly index tracking price developments in the Irish rental market.

It is considered the most comprehensive and accurate source of data on rent levels in Ireland's private rental sector.

The data uses RTB registration data to track changes in rent on a quarterly basis.

The average standardised rent for new tenancies is highest in Dublin at €2,128 per month and lowest in Donegal at €950 per month.

In Dublin the annual increase for new tenancy rents was recorded at 6.3%, compared with just over 12% outside of the capital.

Leitrim and Longford saw the highest growth in rent for new tenancies - at just over 22% for both counties.

Renters in Dublin City had the highest average rent for new tenancies at just over €2,000 followed by Galway City at €1,720.

Limerick City recorded the greatest annual increase in rent levels, rising by 18.3% to €1,522.

The index shows that sitting tenants are continuing to pay lower rents than new tenants.

The standardised average rent for existing tenancies was highest in Dublin at €1,829 per month and lowest in Leitrim at €726 per month.

Average rents paid by new tenants nationally is now €1,612 per month, while for existing tenants it is €1,391 - a difference of €221 or 15.9%.

The greater Dublin area of Kildare, Meath and Wicklow had the lowest increase in average rents for existing tenancies, up 4.1% from Q1 2023 compared with 5.2% in Dublin and 6.3% outside the Greater Dublin Area.

''We can see that although rent levels for new tenancies continued to increase nationally by 8.1% in Q1 2024, this has moderated from a high of 11.3% seen in Q2 2023, and it is also down from the 9.1% observed in Q4 2023." said Brian Gallwey, Senior Research Officer with the RTB.

Existing tenants paying around 15% less than new tenants

RTB director Rosemary Steen said that while rent is not decreasing, there are early signs that the rate of rent increase in Ireland is slowing.

Speaking on RTÉ News at One, she said the slowing in the level of increase is "an important trend".

She added that Rent Pressure Zones (RPZs) are effective.

"What we're seeing is that the RPZ measure, that the majority of landlords are we think, applying that correctly, and the tenancies are benefitting," she said.

"We're looking at a data set of 152,737 tenancies and we see that 74% of the tenants are seeing increases of 2% or below."

The report showed that tenants in non-RPZ areas were more likely to see significant rises in rent with 16.5% of existing tenants in non-RPZs experiencing rent increases of 8% or more.

Ms Steen highlighted that existing tenants pay an average of €1,391 per month, which is about 15% less than new tenants.

"It is important for those that are in tenancies to be aware that their rent is lower than going to the market and taking on a new tenancy at the moment."

Ms Steen said the RTB is trying to reduce dispute resolution times by appointing new staff and prioritising anti-social behavior, illegal eviction, and rent withholding.

For the first time, the RTB asked the ESRI to conduct an additional 'Individual Property Level Analysis’ to monitor changes in rent for the same individual properties over time.

The preliminary findings shared today show that nationally, 74% of sitting tenants tracked between Q2 2022 and Q1 2024 experienced an annual rent increase of 2% or less, within RPZ limits.

''[We can] see how their rents are changing from year to year. These new data give us a deeper understanding of the sector. We aim to provide further insights when we publish the full report later this year," said Rachel Slaymaker, Research Officer with the ESRI.

Two new Rent Pressure Zones have been identified.

Carrigaline Local Electoral Area in County Cork and the administrative area of Galway County have recorded four consecutive quarters of new tenancy rent inflation above 7%, which means they now meet the criteria to be designated as an RPZ.

Longford, Leitrim rent increases 'quite concerning'

Double-digit rent increases in places like Longford and Leitrim are "quite concerning", Threshold’s National Advocacy Manager has said.

Speaking on RTÉ’s Drivetime, Ann-Marie O'Reilly called for reform to Ireland’s housing system, which would see an end to rent pressure zones (RPZs) and the introduction of a rent index system, to ensure rents are based on property quality and condition, not just location.

"The average rents in some areas are eye watering, and the increases we're seeing in places like Longford and Leitrim where for a number of years now have seen double digit increases, it's quite concerning."

She welcomed the addition of Carrigaline, Co Cork and Galway county to the areas covered by rent pressure zones (RPZs), highlighting that over 80% of tenancies are now protected by the measure.

However, she said RPZs cannot continue in their current form and need reform given they have been in place for eight years already.

"Rent regulations like we have now aren't really sustainable, and rent regulation doesn't generally help bring rent down.

"We at Threshold want to see a change the housing system in general, whereby we have an increased level of social and cost rental housing that is big enough to compete with the private rental sector and put pressure on it to become more affordable."

She called for a rent index system, whereby if a landlord increases rent in a property, it must be in line with rent on similar properties, and for the scrapping of RPZs.

"We've had them now for eight years, and we really shouldn't have had them that long.

"We should have had enough affordable supply come onto the market so that we could have done away with them.

"They can't continue as they are," she said.