Covid-19 impact leads to falling rents

Second quarter of this year shows that rent levels in Dublin registered 0.0% growth
Covid-19 impact leads to falling rents

The annual growth rate of rents nationally at 1.8% is at the lowest rate since 2012.

The Covid-19 pandemic has had a significant impact on rents, with the latest Residential Tenancies Board (RTB) rent index showing they are falling in Dublin and falling or remaining static elsewhere.

The index for the second quarter of this year shows that rent levels in Dublin registered 0.0% growth on an annualised basis — the lowest annualised growth rate seen in Dublin since 2011.

The index also showed that rents fell nationally between the first and second quarter of this year to stand at €1,226 — a quarterly drop of 0.6%.

The annual growth rate of rents nationally at 1.8% is at the lowest rate since 2012 and according to the RTB, rent levels have moderated across the country, with 13 counties having lower standardised average rents in the second quarter of this year compared to the period between January and March.

The standardised average rent in Dublin now stands at €1,709 and €928 outside of Dublin. The county with the lowest standardised average rent was Leitrim at €599 per month.

Compared to the previous quarter, rents outside Dublin increased by 0.3%, while they decreased by 1.5% in Dublin. On an annual basis, Dublin experienced no growth, while rents outside Dublin grew by 3.4%.

Padraig McGoldrick, interim director of the RTB, said: “It is clear that the Covid-19 pandemic has significantly impacted the rental sector — annual growth has moderated and rent levels have slowed compared to Q1 2020."

Meanwhile, Monasterevin and Kildangan electoral divisions have been named as the latest rent pressure zones.

It means that the entire administrative area of Kildare County Council is now designated a rent pressure zone.

Minister for Housing, Local Government and Heritage, Darragh O’Brien, said: "In line with the rent zone report received from the RTB, I have now signed a ministerial order to designate the entire administrative area of Kildare County Council a rent pressure zone. Following this designation, an estimated 73.7% of tenancies are now in rent pressure zones."

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