The Residential Tenancies Board’s (RTB) latest study reveals that over one-sixth (16.5%) of individuals in areas not categorised as Rent Pressure Zones (RPZs) encountered a jump of 8% or more in their rent in the previous two years. The research underscores the likelihood of a significant surge in rent for tenants living outside RPZs.
This research tracked 152,737 rental agreements from 2022 to 2024 and found a contrast in rental hikes in RPZ and non-RPZ areas. Just 2.8% and 4.8% of Dublin and other RPZ tenants, respectively, experienced a rent increase of 8% or more, compared to non-RPZ inhabitants.
On the contrary, nearly 29.3% of Dublin rental agreements and a quarter of leases in other RPZs documented rent increases between 2% and 8%, surpassing the permissible 2% mark. Specifically in Dublin, approximately 40% of tenants who saw rises between 2% and 4% were marginally over the set limit, as per the study’s findings.
The RTB emphasised that it isn’t always an act of noncompliance if rent increases are beyond 2% in RPZs and could be cumulative in some instances.
In terms of national figures, the survey, conducted by the Economic and Social Research Institute (ERSI), discovered that nearly three-quarters of tenants (74%) had an annual rent increase of 2% or less. In Dublin, more than half (58.3%) of tenants saw no increase in their rent in the previous two years, while the number was higher in other RPZs (65.7%) and non-RPZs (78.1%).
The study utilised rental rates supplied by property owners via annual registration data. Previously, the RTB’s primarily depended on tenant complaints to look into possible violations of RPZ regulations.
Rosemary Steen, the RTB’s director, had stated noncompliance to be an “extremely serious” matter, while appreciating that most landlords were found to be observing the rules. She noted that these noncompliant landlords would be prioritised for communication in an effort to encourage compliance.
Steen further warned that in situations of deliberate and ongoing noncompliance, the RTB would exploit its full powers to investigate and penalise the landlords in question.
The complete findings of the study are set to be publicised later in the year.
Furthermore, the RTB also made public its rental index for the first quarter of 2024, which indicates that existing tenants persist in paying lesser rent than new ones. On a national level, new tenants are paying an average rent of €1,612 per month which is €221 or 15.9% higher than the average rent of existing tenants at €1,391.
Rental rates for new tenancies outside Dublin rose nearly double in comparison to Dublin’s (12.2% to 6.3%) annually. National average rental rates increased by 8.1% for new tenancies and 5.9% for existing tenancies on an annual basis.
Dublin recorded the highest average standardised rent for new tenancies at €2,128 with Donegal ranking the lowest at €950 per month. Counties Leitrim and Longford experienced the highest escalation in rents for new tenancies at 22.6% and 22.5% respectively.
Considering cities, Dublin had the greatest average rent for new tenancies (€2,084), followed by Galway (€1,720), while Limerick city documented the largest annual surge in rent levels, a rise of 18.3% to €1,522.
In other news, the Carrigaline local electoral area in Co Cork and the Galway county administration area have been declared as RPZs in light of RTB’s latest rent index. Both regions qualified for RPZ designation after four sequential quarters reported a rent inflation above 7% for new tenancies.
This implies that approximately 82.84% of private rental agreements are currently based in RPZs.
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