Dublin rents have surged on average 10.5% over the 12 months to the end of June whereas increases in the rest of the country have been much more subdued at 2.6% over the same period, although overall rents are well below their 2007 peak.
According to the latest Quarterly Rent Index of the Private Residential Tenancies Board (PRTB) the average monthly rent for houses in the country over the second quarter was €793, while for apartments it was €858. In Dublin the rent for a house was €1,275, and for an apartment it was €1,134, while outside Dublin, the house rent was €648, and for an apartment it was €640.
“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 Rental Accommodation Scheme tenants now living in the private rented sector,” said director of the PRTB, Anne Marie Caulfield.
“However, the rate of rent increase is worrying 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”.
The figures support the other data relating to the property market over the past year which show property prices in Dublin are well ahead of the rest of the country. The Minister for Finance, Michael Noonan, has blamed the increase in prices on the lack of housing supply in Dublin. He has pledged to introduce a number of incentives to stock construction activity in the capital.
Rents for houses in Dublin was up 8.5% for the 12 months to the end of June and 12.1% for apartments for the same period.
The monthly rent for houses outside Dublin increased by just 2.4%, while apartments outside Dublin experienced an increase of 3.2%.
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.
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