Rents for new tenants in Ireland continued their upward march in the first three months of 2023, according to the latest data from the Residential Tenancies Board (RTB). The RTB’s Rent Index, which tracks rents for newly registered tenancies, showed the average monthly rent nationally rose to €1,544. This represents an increase of 8.8% compared to the same period last year.
Prices in Dublin
The pressure on rents is especially intense in Dublin. According to the RTB, the average rent for new tenancies in Dublin city proper now stands at a whopping €2,102 per month. Across Dublin and the surrounding counties, rents rose 11.4% for new leases. This area accounted for over half of all new tenancy agreements registered nationwide in the first quarter. With demand far outpacing supply, the capital continues to see some of the steepest rent increases in the country.
Prices Outside Dublin
But it’s not just Dublin feeling the pinch. Outside the capital, the average monthly rent for new tenancies was €1,133. A breakdown of the figures shows 16 counties across Ireland now have average rents above €1,000 per month for new leases. This demonstrates rising rents are not a localized trend, but a nationwide issue fueled by a chronic shortage of rental stock. With rents rising steadily even in historically affordable areas, price relief remains elusive for new tenants.
What It Means for Renters
While the quarterly increases show tentative signs of moderating, housing charity Threshold warns the rises are still putting immense pressure on renters. They point out some landlords exploit loopholes to raise rents more than legally allowed between tenancies. For tenants, even single-digit percentage increases represent hundreds more per year in real money. And for low and middle-income renters, these mounting costs are becoming untenable. The latest figures underscore the ongoing affordability crisis and financial strain faced by renters across Ireland.
What It Means for Landlords
On the other side, landlords are reaping the benefits of the market imbalance, especially for new tenancies where they can push rents higher. However, tenant advocates argue more rigorous, nationwide enforcement of rent controls and caps is needed to protect renters from price gouging. They note the RTB’s index only tracks new tenancies – not rent hikes imposed on existing tenants, which can circumvent rent controls. With rents detached from incomes, activists contend stronger oversight of the rental market is overdue to ensure fair treatment for tenants.
Property Management in Dublin
As rents and regulations rise across Dublin, having a professional property management company on your side as a landlord is more important than ever. KPM Property Management provides full-service solutions to help landlords navigate the increasingly complex rental market. Their team handles every aspect of renting out your property – from listing vacancies and screening tenants, to collecting rents and enforcing lease terms.
