New tenants spending almost €1,600 per month on rent
The average rent for new tenancies stood at €1,598 while the average rent for existing tenancies was €1,357.
The average rent for new tenants has increased to €1,598, a rise of over €158 in 12 months.
The latest rent index report from the Residential Tenancies Board (RTB) has revealed that the average rent for new tenancies is significantly higher than rents for existing tenants.
In the third quarter of 2023, the latest period for data, the standardised average rent for new tenancies stood at €1,598 while the average rent for existing tenancies was €1,357.
Rent for new tenancies is, therefore, 17.7% higher than existing tenants.
The third quarter of the year is usually associated with a larger number of new tenancies and a higher turnover rate.
However, there were only 14,000 newly registered tenancies, down from 22,463 in the same period the previous year, a drop of 37.7% when compared to a year ago.
The RTB report urged some caution over the interpretation of the magnitude of this fall, saying a “sizeable number of late registrations can occur".
“Nevertheless, these numbers mark a continuation of the trend of substantial falls in new tenancy numbers and reduced turnover in the private rental sector observed in recent years,” the report added.
“They also point to a change in the seasonal patterns.”
Data from existing rental tenancies across the country was included in the rent index report for July to Sept 2023, which showed that 46,854 existing tenancies were renewed.
The RTB noted that the rent index for existing tenancies is “not a measure of compliance” with rent pressure zone requirements to prevent spiralling prices and that the index can change on a year-on-year basis.
On a regional basis for the third quarter, Dublin county saw the highest average rent for new tenancies, which stood at €2,113.
This was 18.2% higher than the average rent for existing tenancies, which stood at €1,788.
The lowest average rent for new tenancies was in Co Leitrim, at €853 per month. For existing tenancies, the average rent was at €698 for the third quarter.
In Co Cork, new tenancies had an average rent of €1,386, which was 18.5% higher than the average rent for existing tenancies which stood at €1,170.
In Cork City, the rents for new tenancies grew by 7.4% for the third quarter, on a year-on-year basis with the average rent standing at €1,497.
However, there was a difference of over €200 between the average rents for new and existing tenancies.
Furthermore, the rent index report also highlighted that 57.4% of the 14,000 new tenancies nationally were for flats or apartments. In Dublin, this stretched to 78.2%.
