Residential Tenancies Board’s Rent Index Report for Q3 2021
The Minister for Housing, Local Government and Heritage, Darragh O’Brien has noted the Residential Tenancies Board’s Rent Index Report for Q3 2021 published today, Friday December 17th 2021. It is produced in conjunction with the Economic and Social Research Institute (ESRI). This Index Report is based on actual rents paid in respect of the 15,042 private tenancies that were newly registered with the RTB during Q3 2021 and does not provide a measure of the rental prices payable in respect of tenancies registered before that Quarter.
Nationally, private rents grew by 8.3 per cent in Q3 2021. This growth rate is higher than that of the previous quarter (7.0 per cent) and the highest since Q4 2017 (which recorded growth of 8.4 per cent). Standardised average rent stood at €1,397 in Q3 2021 – a quarterly increase of €44.
Minister Darragh O’Brien said: “As always, my Department will work closely with the Residential Tenancies Board (RTB) to ensure RPZ legislation is fully enforced. We also note the significant fall in the number of new tenancies registered during Q3 2021.
“It is very important that we keep increasing public awareness of the suite of tenancy protections in place to regulate rent-setting under the Residential Tenancies Acts 2004-2021. Since 2019, the RTB has enhanced powers of investigation and sanctioning and additional resources to ensure that the full protections against unlawful rents in Rent Pressure Zones (RPZs) can be enforced. The RTB now has a dedicated webpage to publish the particulars of sanctions imposed on landlords, and this work continues to grow.
“In September, I formally asked the RTB to instigate a campaign to identify and pursue non-compliance with rent-setting responsibilities. This is now under way and I have been informed that hundreds of letters a day are currently issuing to landlords. The letters will notify landlords that, according to RTB records, there may be a breach of rent-setting rules in respect of a particular dwelling in a RPZ. If it transpires that no exemption to the rules apply and that there was a breach, they will need to arrange for the repayment of rent to their tenant or former tenant. If the RTB was not notified of the application of an exemption, the landlord will need to comply with the obligation to notify the RTB accordingly. The RTB may formally commence an investigation leading to a possible sanction being imposed in some cases.
“This is a complex area and it is critical to educate and raise awareness of landlord and tenant legal obligations in the rental sector. For example, landlords need to be aware that the rent controls in RPZs apply when creating new tenancies in existing rental properties. The amount of the rent paid under last tenancy will inform the maximum permissible rent for the new tenant. The RTB’s website has an RPZ calculator to help set lawful rents and detailed guidance on rent setting so there is no excuse for a landlord to set an unlawful rent in a RPZ. Any unlawful rent setting in RPZs will be dealt with in a serious manner by the RTB and enforcement will ensue to do right by tenants.
“The Government is serious in its efforts to curtail rent inflation. The Residential Tenancies (Amendment) Act 2021 was enacted on the 11th of December and caps any rent increases in a RPZ at 2% per annum pro rata in RPZs, when HICP inflation is higher. The RTB will be enforcing this new rent cap.”
Notes to Editor:
- Typically, the third quarter of every year is characterised by a rise in the number of tenancy registrations which is associated with the academic year cycle. This usual pattern is not evident in Q3 2021. While the Q3 2021 tenancy registration level (15,042) did mark a small increase on the previous quarter (14,361), there has been a substantial decline in the number of tenancies registered with the RTB compared to Q3 2020 (23,026). This represents an annual decline of 35 per cent compared to the same quarter in 2020 and a 31 per cent decline compared to pre-pandemic Q3 2019.
- Dublin has seen a greater initial drop and slower rebound in rent prices since the onset of the Covid-19 pandemic than elsewhere. This likely reflects the differing impact of the associated economic shock on both the demand and supply sides of the market in the short run. While rental price growth remained lower in Dublin than elsewhere in Q3 2021, its quarter-on-quarter growth of 3.6% is the highest since Q2 2019.
- In Q3 2021, rents in Dublin remained substantially higher than those outside (Non-Dublin) at €1,916 per month compared to €1,114. The standardised average rent in the Greater Dublin Area (GDA) stood at €1,444 in Q3 2021, while it was €1,070 Outside of the GDA.
- The highest standardised average rent for Q3 2021 was in Dublin at €1,916 per month, while the lowest monthly rents were in Leitrim at €731 per month.