Rents in Dublin rose ten times the level outside the capital in the 12 months to end of March 2014 according to the quarterly Private Residential Tenancies Board (PRTB)/ESRI Rent Index. Meanwhile as reported last week, there were 39,250 BTL (buy-to-let) accounts in arrears in Q1 2014 and 70% of the loans are tracker mortgages - - repayments are set to fall again after last week's ECB rate cut.
The PRTB said that on an annual basis, nationally, rents were 3.5% higher than in quarter 1 of 2013. Nationally, rents for houses were 1.6% higher, while apartment rents were 5.6% higher than in the same quarter of 2013.
Annual growth in the Dublin market was stronger, up by 8.4%, with Dublin house rents up by 6.7% and Dublin apartment rents higher by 10.3%. In contrast, annual growth in rents for the market outside Dublin was more subdued, recording growth of 0.8% when compared to the first quarter of 2013. Again the performance differs by property type. Monthly rent for houses outside Dublin increased by just 0.1%, while apartments outside Dublin experienced an increase of 2.1%.
In the first quarter of 2014, monthly rents were close to 23% lower than their peak in late 2007, with Dublin rents down 16.4% from peak. Rents for houses are 24.0% lower than they were in the fourth quarter of 2007. Rents for houses outside Dublin are 26.5% lower than their peak, while rents for Dublin houses are 15.0% lower than in late 2007.
Monthly rents for apartments are nearly 21% lower than they were in the first quarter of 2008. Apartment rents outside Dublin are 24.6% lower than their peak, while rents for Dublin apartments are 15.0% lower than in late 2007. Dublin apartments account for 22.8% of registrations with the PRTB
The Rent Index is based on about 30,000 tenancies registered with the board.
“The private rented sector in this country continues to reflect a story of two very different markets,” said Anne Marie Caulfield, director of the PRTB. “Dublin continues to show a strong year-on-year growth in rent levels, while the rest of the country shows only a marginal increase over the year to the end of March.”
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