The average cost of a new tenancy nationally was up 4.7pc in the three months to June when compared with the same quarter last year.
The average cost of a new tenancy across the State now stands at €1,644 a month, according to data gathered for the Residential Tenancies Board. This is up €74 a month compared with last year.
New tenancies now cost €2,147 a month in Dublin.
The rise in rents for new tenancies was mainly driven by demand outside of Dublin with a 8.9pc surge in costs.
In Dublin, the average annualised cost of rents for new tenancies was up 2.5pc.
The Residential Tenancies Board (RTB) pointed out that the growth in average new tenancy rents nationwide has slowed.
Today’s News in 90 Seconds – December 5th
The RTB, which regulates the rental sector, said existing tenancy average rents rose faster than new tenancies for the first time in the second quarter.
The standardised average rent for existing tenancies rose by 5.8pc annually to €1,415 a month.
This is €229 lower than for new tenancies.
The RTB stressed that existing tenants pay less than new ones, but finance experts said the 5.8pc rise in rents for existing tenants was out of whack with rules regulating rent rises.
Most of the country is covered by State-mandated rental pressure zones (RPZs).
Under the law, rents in RPZs are not supposed to rise more than 2pc a year.
Rents for existing tenants are highest in Dublin at €1,859 per month.
They are lowest in Leitrim at €770 per month.
Almost a third of existing tenancies were new tenancies a year earlier, the RTB said.
It said that in addition to new tenancies in existing rental properties, new tenancies also include
new builds and properties not rented for two years that are not subject to rental pressure zone restrictions.
These tend to come on the market at a higher rent.
The highest growth rates in average rents for existing tenancies were seen in Donegal, which an annualised rise of 12.9pc in the three months to June.
Leitrim saw rises of 12.2pc for existing tenants with an increase of 12.2pc in Longford.
The lowest growth rates in average rents for existing tenancies were seen in Wicklow at 2.1pc, followed by Louth and Laois.
The RTB, which uses the Economic and Social Research Institute (ESRI) to assess registrations made to its, claimed the average rent for new tenancies has “slowed significantly”
It has fallen from 8.3pc in the first quarter of the year to 4.7pc in the second quarter when compared with the same quarter last year.
Dublin has the highest new monthly cost for new tenancies at €2,147.
The lowest is in in Leitrim at €966 per month.
Counties Longford and Roscommon saw the highest growth in average rent for new tenancies at 19pc and 18.2pc respectively.
Looking at cities, Dublin City had the highest average rent for new tenancies at €2,113, followed by Galway City at €1,684.
Limerick City recorded the greatest annual increase in average rent levels, rising by 13.5pc to €1,539.
The ESRI carried out a study to see how rents were changing at individual property level.
It found that rents at individual property level grew more slowly than average rents in the market-wide index.
The average growth rate in rent across all properties tracked was 2.6pc.
The study found that 60pc of tenants saw no annual increase in rent.
ESRI experts looked at rent increases rental property zones (RPZs) and found these were lower than for areas now covered by rent restrictions.
It found rents for individual properties with ongoing tenants in Dublin grew on average by 1.3pc annually
In other RPZs rents rose by 1.4pc
But in non-rental zone properties the rise was 3.5pc.
It was also found that registered private and approved housing body tenancies continue to grow.
Registered private tenancies rose by 8.4pc annually to 236,198.
Approved housing body tenancies grew by 15.6pc annually to 49,195 in the third quarter of this year.
The number of private landlords has increased by 5.7pc annually to 104,327.
