Almost a third of tenancies in Dublin and a quarter of tenancies in other Rent Pressure Zones (RPZs) had rent increases above the legal limit of 2 per cent, a new study has found.
The preliminary findings of a study published by the Residential Tenancies Board (RTB) on Thursday found that 29.3 per cent of tenants in Co Dublin and 25.9 per cent of tenants in other RPZs had a rent increase of between 2 and 8 per cent or more.
Despite this, the study, which tracked 152,737 tenancies from 2022 to 2024, found that tenancies in non-RPZ areas were more likely to have “significant hikes” in rent.
It shows that 16.5 per cent of tenants in non-Rent Pressure Zones (RPZ) experienced rent increases of 8 per cent or more, compared with 2.8 per cent of tenants in Dublin and 4.8 per cent of tenants in other RPZs.
In Dublin, about 40 per cent of rent increases between 2 and 4 per cent were just fractionally above the allowed increase rate, the study found, with the RTB explaining that “rounding up” could account for the bulk of these.
The RTB stressed that increases of more than 2 per cent in RPZs do not necessarily indicate noncompliance, saying some cases could have been done cumulatively.
Nationally, the study carried out by the Economic and Social Research Institute (ERSI) found that 74 per cent of tenants experienced an annual rent increase of 2 per cent or less.
In Dublin, 58.3 per cent saw no change in rent over the two-year period, compared to 65.7 per cent in other RPZs and 78.1 per cent in non-RPZs.
The study relied on rent prices provided by landlords under annual registration data. Until now, the RTB has primarily relied on complaints from tenants to investigate potential breaches of RPZ rules.
While welcoming the fact that the majority of landlords were found to be compliant, Rosemary Steen, director of the RTB, described noncompliance as “extremely serious”.
“We will be communicating with these landlords as a priority to bring them back into compliance. Where there is deliberate and ongoing noncompliance, we will be using our full powers to investigate and sanction non-compliant landlords,” she said.
The full study findings will be published later this year.
The RTB also published its rent index for the first quarter of 2024 which found that existing tenants continue to pay lower rents than new tenants.
The national standardised average rent paid by new tenants is now €1,612 per month, which is €221 or 15.9 per cent higher than existing tenants who pay an average of €1,391.
Rents for new tenancies outside of Dublin grew at almost twice the rate (12.2 per cent) of those In Dublin (6.3 per cent) year on year.
The national average rent grew by 8.1 per cent for new tenancies and 5.9 per cent for existing tenancies annually.
The average standardised rent for new tenancies was highest in Co Dublin at €2,128 and lowest in Donegal at €950 per month while counties Leitrim and Longford saw the highest growth in rent for new tenancies at 22.6 per cent and 22.5 per cent respectively.
In Dublin, 3 per cent of new tenancies and 6.3 per cent of existing tenancies had a monthly rent of €1,000 or less, with 51 per cent of new tenants paying over €2,000, compared to 33.7 per cent of existing tenants.
In terms of cities, Dublin had the highest average rent for new tenancies (€2,084), followed by Galway (€1,720) while Limerick city recorded the highest annual increase in rent levels, rising by 18.3 per cent to €1,522.
Separately, the Carrigaline local electoral area in Co Cork and the Galway county administrative area have been designated as RPZs following the RTB’s latest rent index.
The two areas now meet the criteria to be designated RPZs having both recorded four consecutive quarters of new tenancy rent inflation above 7 per cent.
It means 82.84 per cent of private tenancies are now located in RPZs.
