Rents In Dublin Rise By 8.5%

Annual growth in the Dublin private rented market in the year to the end of June this year was 10.5%, with Dublin house rents up by 8.5% and Dublin apartment rents up by 12.1%.

In contrast, annual growth in rents for the market outside Dublin was more subdued, recording growth of 2.6% when compared to the second quarter of 2013. Again the performance differs by property type. The monthly rent for houses outside Dublin increased by just 2.4%, while apartments outside Dublin experienced an increase of 3.2%.

The data is from the Quarterly Rent Index of the Private Residential Tenancies Board (PRTB), which operates a national registration system for the private rented sector. It is compiled by Economic and Social Research Institute (ESRI) for the Board.

This latest data for the private rented sector means that in the second quarter of this year, monthly rents for the whole country were almost 19% lower than their peak in late 2007, with Dublin rents down 12.7% from that peak. Rents for houses nationally are 22.3% lower than they were in the fourth quarter of 2007. Rents for houses outside Dublin are 25.2% lower than their peak, while rents for Dublin houses are 11.7% lower than in late 2007.

Commenting on the Rent Index findings, the Director of the PRTB, Ms. Anne Marie Caulfield, said: "The private rented sector is a very important aspect of Ireland’s housing policy, and has doubled in size between 2006 and 2011. It is also serving an important role in terms of Social Housing, with approximately 77,000 Rent Supplement tenants and 36,000 RAS (Rental Accommodation Scheme) tenants now living in the private rented sector.

"However, the rate of rent increase is of concern in that it is impacting on affordability, especially in Dublin. The PRTB will be submitting a strategy for the private rented sector to the Minister in the near future, which will examine measures to increase supply, improve affordability and ensure that standards are adhered to."

(CD/MH)