RTB Index reports an 8.9% increase in rents

The Residential Tenancies Board (RTB) has published the Q1 2023 Rent Index report for the period of January to March 2023. Independently analysed by the Economic and Social Research Institute (ESRI), the RTB Rent Index report is based on the total number of private tenancies newly registered with the RTB each quarter. The Rent Index provides rental indicators based on actual rents paid for new tenancies in the private rental sector in Ireland.

The Rent Index report is based on (i) new tenancies in existing rental properties, (ii) new properties being let for the first time, and (iii) new tenancies in properties that have not been let in the previous two years. It is not designed to provide a measure of the rents being paid by existing tenants. The term “new tenancies” refers to a new rental agreement between a landlord and tenant.

This Rent Index is based on actual rents paid under 14,085 private tenancies which were newly registered with the RTB in Q1 2023. This is a decrease from 15,336 in the same quarter of the previous year. Dublin and the Greater Dublin Area (GDA), accounted for over half (52.1%) of all new tenancy agreements registered in Q1 2023. Nationally, 58.3% of all new tenancies were in respect of apartments.

National Rental Trends

Nationally, the Q1 2023 Rent Index shows the standardised average rent in newly registered tenancies was €1,544 per month, which is an increase an year-on-year increase of 8.9%.

In Q1 2023, the standardised average rent in new tenancies in houses nationally stood at €1,522 per month, which is an increase of 2.6% on Q4 2022 and a rise of 9.2% year-on-year. The standardised average rent in new tenancies for apartments stood at €1,586 per month in Q1 2023, which is an increase of 2.4% on Q4 2022, and an increase of 8.8% year on year.

Regional Trends

In the first quarter of 2023, the level of standardised average rents in new tenancies in Dublin stood at €2,102 per month compared to €1,187 per month outside Dublin (non-Dublin). The standardised average rent in new tenancies in the Greater Dublin Area (GDA) (excluding Dublin) stood at €1,530 in Q1 2023 while it was €1,133 outside the GDA. Year-on-year price increases in rents for new tenancies were at 8.0% for Dublin while non-Dublin experienced a year-on-year growth rate of 8.3%. For the same period, the annual growth rate in new tenancy rents was 7.1% in the GDA (excluding Dublin) region and 8.5% Outside the GDA.

The standardised average rent in new tenancies for houses in Dublin Q1 2023, per month, was at €2,257, an increase of 2.7% on the previous quarter and a rise of 4.9% year-on-year. The standardised average rent in new tenancies for apartments in Dublin stood at €2,083 per month in Q1 2023, an increase of 2.1% on the previous quarter and a rise of 9.0% year-on-year.

County Developments

The highest standardised average rent in new tenancies for Q1 2023 were in Dublin at €2,102 per month while the lowest monthly rents were in Leitrim where the standardised average stood at €809 per month.

Sixteen counties had standardised average rents in new tenancies above €1,000 per month in Q1 2023: Carlow, Clare, Cork, Dublin, Galway, Kerry, Kildare, Kilkenny, Laois, Limerick, Louth, Meath, Waterford, Westmeath, Wexford, and Wicklow.

The lowest yearly growth in the standardised average rent for new tenancies in Q1 2023 was in Carlow where rents grew by 2.0%.

The county with the fastest growing standardised average rent in new tenancies in Q1 2023 was Roscommon with a reported 23.7% year-on-year growth. Its important note the small number of registrations in Roscommon and other more rural, smaller rental markets can contribute to volatility in the standardised average rents and growth rates.

Fifteen counties had annualised growth in standardised average rent for new tenancies above 10.0% in Q1 2023.

Niall Byrne, RTB Director, commenting on the release of the RTB Q1 2023 Rent Index, said: “The Residential Tenancies Board is the state agency with responsibility, among other functions, for the collection and analysis of data on the residential rental sector. Today, we are pleased to be publishing the Q1 2023 Rent Index Report.

“The RTB Rent Index Report, based on independent analysis conducted by the ESRI, provides authoritative data on rent levels and movements in rents for new tenancies in the private rental sector.

“It is important to note that these results are for new tenancies only and therefore these insights relate to only a proportion of the overall private rental sector in Ireland.”