Rent costs still rising but at a slower rate, says ESRI

The rate of growth in rent prices is slowing, according to the latest figures from the Economic and Social Research Institute.

The latest rent index for the third quarter of this year, prepared by the ESRI for the Residential Tenancies Board, shows that while rents continue to rise, the rate of growth slowed over July to September compared to the second quarter of the year.

Nationally, monthly rents increased 2.3%, marginally slower than the previous quarter, when they rose 3.5%. The index also recorded the first quarterly decline in Dublin rates in over three years, and found that rents outside Dublin are now rising at a faster pace than in the capital.

Rosalind Carroll, director of the Residential Tenancies Board, warned against reading too much into the results from one quarter of the year: “In Q2, rents in Dublin went up by 4.4%, whereas this quarter we have seen much-reduced growth of just 0.6%.”

“But taking the Q3 2016 data, based as it is on actual rents being paid, as opposed to asking rents, it does appear that the rate of growth has slowed, and in particular that the rate of rental growth in Dublin appears to have slowed.

“What is also significant is that the rents outside of Dublin are now rising more rapidly than Dublin rents. Annually rents outside of Dublin grew by 9.7% compared to 7.1% in the Dublin market.

“It should be noted though that while rents outside of Dublin are accelerating, they are still 7.3% behind the peak levels of 2007,” she said.

The board says its index “is the most accurate and authoritative rent report of its kind on the private accommodation sector in Ireland”, because it is based on 30,260 new tenancies which started between July and September this year.

These tenancies were registered with the board, and so the figures reflect the actual rents being paid, according to its records, as distinct from the asking or advertised rent.

Rents for houses are rising at a slightly faster rate than rents for apartments, at 2.6% compared to 1.8%. The slowdown in growth in the capital appears to be due to a slight decrease in Dublin house rents of 0.6%, while rents for Dublin apartments rose 1.5% over the same period.

Overall rents outside Dublin increased 3.6%, which consisted of a 3.6% increase in house rents while apartment rents rose by 3.4%.

More on this topic

'The new reality for a whole generation' - Majority of renters believe they will never own their own home'The new reality for a whole generation' - Majority of renters believe they will never own their own home

I-Res Reit targets 'regional' expansion with €700m warchestI-Res Reit targets 'regional' expansion with €700m warchest

House prices in Dublin up to 14 times the average salary House prices in Dublin up to 14 times the average salary

Commission finds landlord discriminated against family in refusing to accept HAP paymentsCommission finds landlord discriminated against family in refusing to accept HAP payments


Lifestyle

About 70% of our planet is covered in water, in one form or another and it is vital to our survival.Appliance of science: Where does water come from?

Touched by the last rays of the sun, the grey mud of the estuary is dimpled with silver pools. Above them, rooks fly in their thousands, rooks uncountable, on different levels of the air.Interplay of rooks above Cillmanister a lovely mystery

A NEW survey confirms the presence of at least six rare spiders in Killarney National Park.Six rare spiders found in Killarney National Park

IT WAS written about an old ruin in Co Wexford but it may as well have been written for any other place.Islands of Ireland: Cows come home to Inishbarra

More From The Irish Examiner