The annual growth rate of rents nationally at 1.8 per cent is at the lowest rate since 2012 due to the effects of the Covid-19 pandemic.
The latest RTB Rent Index shows that rent levels have moderated across the country, with no growth in Dublin on an annual basis.
The national standardised average rent decreased by 0.6 per cent from €1,233.58 to €1,226.20 in Quarter 2 2020 (Q2). At 1.8 per cent, the year-on-year growth rate of the national standardised average rent in Q2 2020 was at its lowest level since 2012.
The standardised average rent in Dublin now stands at €1,709 and €928 outside of Dublin. Compared to the previous quarter, rents outside Dublin increased by 0.3 per cent, while they decreased by 1.5 per cent in Dublin. On an annual basis, Dublin experienced no growth, while rents outside Dublin grew by 3.4 per cent.
The RTB Rent Index, which is compiled in conjunction with the Economic and Social Research Institute (ESRI), is the authoritative report on the Irish rental market. It is based on actual rents paid on 16,857 tenancies registered with the RTB in the quarter, which is made up of homes new to the rental sector, new tenancies in existing housing stock and renewals of existing tenancies.
Annual growth has moderated in most counties and the standardised average rent in 13 counties was lower in Q2 2020 compared to Q1 2020. There was a sizeable fall in the number of tenancies registered with the RTB. Out of the 26 counties, 21 experienced a decline in the number of tenancies registered between Q1 and Q2 2020.
There were seven counties where the standardised average rent exceeded €1,000 per month in Q2 2020 – Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow – while Limerick had a standardised average rent of €988. The high rental levels in these areas relative to other counties reflects the concentration of demand close to the country’s largest employment hubs.