Rental prices soar in Ireland as exiting landlords cut new leases in half

There has been a huge reduction in the number of landlords offering new leases as rental costs have risen again.

he shortage of property means that people spend a significant portion of their income on housing costs.

New rentals were 9% more expensive last year, according to the latest rental index from the sector regulator, the Residential Tenancies Board (RTB).

There has been close to a 50% drop in the number of properties recently registering with the board.

The latest figures came as a separate investigation found that more than a third of landlords are breaching the Rent Pressure Zone’s rent increase limits.

The national median rent on new leases was €1,415 per month at the end of last year, an increase of €117 on the rents charged at the end of 2020.

However, the cost of the national rental has fallen by €4 in the last three months of 2021, compared to the period from July to September.

Rental costs for new leases in Dublin were €1,972 per month, compared to €1,104 per month outside Dublin.

The index, which is independently tracked by the Economic and Social Research Institute (ESRI), measures new leases on existing rental properties, new properties that are rented for the first time, and new leases on properties that have not been rented. rented in the previous two years.

The median rent for new home rentals in Ireland is now €1,390 per month, a slight drop of 0.9% from the previous quarter, but an increase of 9% from last year.

For apartments, the average rent is now €1,459 per month, an increase of 9.3% compared to the end of 2020.

The RTB said the rental index was not designed to provide a measure of rents being paid by existing tenants.

Leitrim has the lowest costs, with median rent on new leases now €740 per month.

On a quarterly basis, rents on new leases fell in 14 counties in the last three months of last year.

Rents from new leases in Roscommon grew the most, with a quarterly growth rate of 12.6%.

The most recent index is based on rents paid on 9,346 private leases newly registered with the RTB during the last three months of last year and used in the sample. This is a 48% reduction in the number of registered leases used in the sample for the rental index issued at the end of 2020.

RTB director Niall Byrne pointed to the drop in the number of leases registered in the quarter.

“This is likely due to factors such as continued restrictions on the supply of rental properties and current tenants choosing to stay longer in their existing leases,” Byrne said.

Meanwhile, owners have issued 5,617 termination notices to the board since 2019.

When asked about the findings in an ESRI report showing that a third of landlords are breaking Rent Pressure Zone rules, the board said investigating this was a priority.

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