Rent Index Reports 8% Increase For New Tenancies Between April & June

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The Residential Tenancies Board (RTB) has published the 2022 Rent Index report for April to June 2022. There’s been an 8% increase in agreed prices to rent a home in Ireland.

Independently analysed by the ESRI, the RTB Rent Index report is based on the total number of private tenancies newly registered each quarter.

This Rent Index is based on actual rents paid under 12,701 private tenancies which were newly registered with the RTB in Q2 2022.

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This is a decrease of 16% on the number of registered tenancies used in the sample in the Q2 2021 Rent Index (15,048).

Dublin, and the Greater Dublin Area accounted for 54.2% of all new tenancy agreements registered in Q2 2022. 59.5% of new tenancies registered were for apartments.

National Rental Trends

Nationally, the Q2 2022 Rent Index shows that the standardised average rent in newly registered tenancies was €1,464 per month, which is an increase of €9 compared to Q1 2022, which stood at €1,455. The quarterly growth rate represents a 0.6% increase. On a yearly basis, rents in these newly registered tenancies increased by 8.2%.

In Q2 2022, the standardised average rent in new tenancies for houses in Ireland stood at €1,457 per month, which is an increase of 1.4% on Q1 2022 and a rise of 8.4% year-on-year. The standardised average rent in new tenancies for apartments stood at €1,497 per month in Q2 2022, which is an increase of 0.3% on Q1 2022, and an increase of 8.5% on Q2 2021.

Regional Trends

In the second quarter of 2022, the level of standardised average rents in new tenancies in Dublin stood at €2,011 per month compared to €1,130 per month outside Dublin (non-Dublin). The standardised average rent in new tenancies in the Greater Dublin Area (GDA) stood at €1,438 in Q2 2022 while it was €1,091 outside the GDA. Year-on-year price increases in rents for new tenancies were lowest at 0.4% in the GDA and highest at 8.8% in Dublin. Year-on-year increases in rents for new tenancies was 8.3% for outside the GDA.

The standardised average rent in new tenancies for houses in Q2 2022 was highest at €2,253 per month in Dublin and lowest at €1,125 per month outside the GDA. The standardised average rent in new tenancies for apartments in Q2 2022 was highest at €1,979 per month in Dublin and lowest at €1,059 per month outside the GDA. The lowest annual growth rates across the regions, for both houses and apartments, were recorded in the GDA, at +3% and -2.5%, respectively.

County Developments

The highest standardised average rent in new tenancies for Q2 2022 was in Dublin at €2,011 per month while the lowest monthly rents were in Donegal, where the standardised average rent in new tenancies stood at €783 per month.

Fourteen counties have standardised average rents in new tenancies above €1,000 per month in Q2 2022: Carlow, Cork, Dublin, Galway, Kildare, Kilkenny, Laois, Limerick, Louth, Meath, Waterford, Westmeath, Wexford, and Wicklow.

The lowest yearly growth in the standardised average rent for new tenancies in Q2 2022 was in Wicklow where rents fell by 2%. Kildare had the second lowest yearly growth rate, with rents falling by 1.1%. The county with the fastest growing standardised average rent in new tenancies in Q2 2022 was Leitrim which reported 20% year-on-year growth. Fourteen counties had a yearly growth rate in new tenancy rents above 10% in Q2 2022.

Niall Byrne, RTB Director, commenting on the release of the RTB Q2 2022 Rent Index said:

“The Q2 2022 Rent Index Report shows us that the national rent level for new tenancies across the country has continued to rise. We also see a continued decrease in the number of tenancies registered with the RTB in the quarter. These results are likely due to a mixture of factors including the continued limited supply of rental accommodation. It is important to state that these results are for new tenancies only and therefore these insights relate to only a small part of the private rental sector in Ireland.”

He continued:

“Over the last 12 months, there have been some important changes for the RTB and for the sector. With the introduction of annual registration on 4 April 2022, and of our new tenancy registration system in November last year, the data analysis and reporting capabilities of the RTB will be improving significantly as we move into 2023. We acknowledge that the new registration system has created difficulties for some landlords and agents, and we are working hard to address these. As we move towards the completion of this first cycle of annual registration in April next year, we remain confident that annual registration will provide the RTB with much greater visibility on rents for both existing and new tenancies. This expanded data will allow us to provide new insights and improved information to tenants, landlords and the wider public during 2023 while also providing enhanced data to inform the development of policy for the residential rental sector.”