New tenants paying hundreds more than existing tenants in monthly rent, index shows
The Residential Tenancies Board also noted that the number of new tenancy registrations fell significantly in the fourth quarter of 2023 compared to the same period in 2022.
New tenants are paying significantly more than existing tenants to rent a home in Ireland, with those in Cork paying almost €250 extra a month.
The latest rent index from the Residential Tenancies Board (RTB) for the last quarter of 2023 shows that the price of new tenancies in Ireland grew by 9.1% last year while existing tenancies grew by 5.9%.
Rents in a rent pressure zone cannot legally be raised by more than 2% a year, but the RTB stressed that this 5.9% rise in existing rents doesn’t mean there are widespread breaches of this legislation. It added measures are needed to clamp down on landlords flouting the rules, though.
The standardised national average rent for new tenancies in Ireland stood at €1,595 in the Q4 2023. In Dublin, the average rent for new tenants stood at €2,098. In Cork City, this figure was €1,532.
The figures show that new tenants in Limerick are paying significantly more than they were a year ago, with new rents rising by 25% in just 12 months. Having lagged behind the likes of Cork and Galway for many years, new rents in Limerick city now stand just behind them at €1,514 a month.
Furthermore, new tenants in Limerick are now paying almost €400 more than existing ones according to the RTB rent index. Behind Limerick city, Cork City had the second-highest annual growth rate in new rents with Waterford having the lowest rise.
For existing tenants, the standardised national average stood at €1,374. This was €221 cheaper than what new tenants are paying, with the new rents 16% higher than existing rents.
The difference was more pronounced in Cork. Across the entire county, new tenants were paying an average of €1,400 a month in Q4 2023. This compared to existing tenants paying €1,158, a difference of €242 (20.9%).
The RTB said that the largest difference between new and existing rents was found in Sligo, where new tenants are paying 36% more than existing ones. This translated to new renters in Sligo paying €300 more than existing renters.
The rental watchdog also noted that the number of new tenancy registrations fell significantly in the fourth quarter of 2023 compared to the same period in 2022.
“The numbers of new tenancy registrations for 2023 as a whole were 21% lower than in 2022, with year-on year falls greatest from Q2 2023 onwards, coinciding with the jump observed in new tenancy rental inflation,” its report said.
Dublin and its neighbouring counties accounted for over half of all new tenancies registered in the last three months of 2024, while four in five new tenancies registered in Dublin were for apartments.
Due to the way the statistics are compiled, with different sets of homes included in the sample between different quarters, the RTB said that the 5.9% rise in the price paid by existing tenants cannot be taken to mean landlords are flouting rent pressure zone requirements.
Its deputy director Lucia Crimin said: “However, a core function of the RTB is to ensure compliance with rental law and the RTB takes extremely seriously any potential non-compliance with rental law.
“Therefore, we have recently commenced analysis on the registration dataset to understand how rent amounts change over time in individual properties both inside and outside Rent Pressure Zones. We expect that by the end of this year, through this process, we will enhance our ability to identify potential non-compliance with rental law — in particular the requirements to register tenancies and to set rent in compliance with RPZ rules.”
CONNECT WITH US TODAY
Be the first to know the latest news and updates
