Advertised rents across the country increased by 2.4% between April and June, when compared to the first three months of the year.
According to property listings website Daft.ie, the average market rent nationally in the second quarter stood at just under €1,800.
It means rents sought in the open market are now 10.7% higher than they were during the same period one year ago.
The availability of rental properties remains the big driver of asking prices, with supply tight and demand remaining strong.
However, the data shows that over the last few months there were signs that the number of homes available to rent has increased slightly, with 1,200 on the market nationally on August 1st, up 460 on the same date last year.
Nonetheless, the number of homes available on the market is still less than one third of what had been typical in the 2015-2019 period, which was already one of scarcity.
Author of the Daft.ie Rental Report, Trinity College Dublin economist Ronan Lyons, said the trend recorded in Dublin was noticeably different to that outside the capital.
In Dublin rents advertised rose by just 0.3% in the second quarter when compared to the first, the second quarter in a row of low growth.
But outside the capital, the increase was 4.3% which was the second largest quarterly increase recorded since the 2006 when Daft started compiling the data.
“The figures in this latest rental market report indicate something of a split in market conditions,” said Mr Lyons.
“In Dublin, the construction of new rental housing – together perhaps with the effect of layoffs in some larger employers – has led to an easing of pressure in the open market.”
“Outside the capital, however, the lack of new rental homes means that the imbalance between supply and demand is still there.”
In the other main cities of Cork, Galway, Limerick and Waterford, rents sought rose between April and June, having fallen in the previous three-month period.
In Cork city they were up 7.4% compared to the same period last year, at €1,793, while in Galway city average asking rents hit €1,867, up 12.2% year on year.
In Limerick the increase was 11.5%, bringing advertised rents to €1,738 and in Waterford they reached €1,471, up 12.1% on the second quarter of 2022.
The report also includes information on rents paid by sitting tenants and shows that on average, rents paid by those in a tenancy increased by 3.8% over the last twelve months,
The bigger percentage increases came outside Dublin at 4.5%, compared to 3.2% in the capital.
The Institute of Professional Auctioneers & Valuers said agents are seeing more properties on the market for rent and Rent Pressure Zone rules are responsible for some of the larger increases captured in the latest report..
Pat Davitt, IPAV Chief Executive said, “The latest unintended consequence of RPZ legislation is, agents report, landlords not already within RPZ rules increasing rents every two years, according to legislation, but arising from the fear of their areas coming within the rules and their being consequently, and potentially, unable to achieve market rent for a considerable period, regardless of increasing costs, including higher interest rates.”
Mr Davitt said RPZ rules have served to inflate rents form their introduction in December 2016.
“As we’ve said previously, on the introduction of the RPZ system some landlords rushed to rapidly raise rents before the door closed, without a doubt contributing to rent inflation that would otherwise not have happened,” he said.
Article Source: Advertised rents rise another 2.4% in second quarter – Daft.ie – Will Goodbody – RTE