PEOPLE who can get a new lease have to shell out more money than they did last year.
According to the rent index of the housing rental office (RTB), the nationwide average rent for a new rental is now almost 1,500 euros, an increase of 9 euros compared to the previous year.
A large number of landlords exiting the market by selling their properties is driving prices up.
According to RTB, new rents increased nationwide in the three months to the end of June by 8.2 percent compared to the same quarter last year.
The nationwide average rent for new rentals is now EUR 1,464, around EUR 9 higher than in the previous year.
This index analyzed 12,701 new tenant registrations.
This is a 16 percent decrease from the number of new leases in the second quarter of last year, indicating approximately 2,347 fewer leases were offered.
Landlords have exited the market in droves, complaining of a high level of regulation and a stricter tax system than rental funds.
Earlier this week, a separate report from Daft.ie found that an extreme shortage of rental properties is leading to a record rise in housing costs.
Asking prices for new leases are up 14 percent year-on-year in the three months to September, according to Daft.ie.
In Dublin, the average rent for new rentals was €2,011 per month.
That is 162 euros more per month than in the previous year.
Outside Dublin, new lease rents now average €1,130 per month, up from €68 per month.
The normalized average rent for new rentals in the greater Dublin area was EUR 1,438, an increase of EUR 6 per month compared to the previous year.
Outside Greater Dublin, the average monthly rent is €1,091, up €84 per month.
RTB director Niall Byrne said the latest results show national rent levels for new leases have continued to rise across the country.
“We are also seeing a continued decline in the number of leases registered with RTB during the quarter.
“These results are likely due to a mix of factors, including the continued limited supply of rental housing.”
He said it is important to recognize that these results only apply to new rentals and therefore these findings relate to only a small part of the private rental sector in Ireland.
Mr Byrne acknowledged that a new system requiring landlords to register each year has not worked properly.
“We recognize that the new registration system has caused difficulties for some landlords and agents and we are working hard to address them.”
He added that the new annual registration system will give RTB much greater visibility into rents for both existing and new leases.
“This enhanced data will allow us to provide new insights and improved information to renters, landlords and the general public in 2023, while also providing improved data to inform policy development for the residential rental sector,” Mr Byrne said.
https://www.independent.ie/business/personal-finance/property-mortgages/rents-surge-sees-average-monthly-cost-hit-1500-42170287.html Rent increases lead to average monthly costs of €1,500