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Wednesday 18 July 2018

Dublin rent soars to €2k per month

In Dublin, the average cost of a new rental tenancy is above €1,500 a month, as restricted supply and population growth combine to put the squeeze on those depending on the private rental market. (stock photo)
In Dublin, the average cost of a new rental tenancy is above €1,500 a month, as restricted supply and population growth combine to put the squeeze on those depending on the private rental market. (stock photo)

The pressure on rental costs in Dublin is now spreading to its neighbouring commuter counties.

New figures show it now costs more than €1,000 a month nationally to rent a property.

The average cost of renting was up 6.4pc in the year to last December, according to the State's Residential Tenancies Board (RTB).

The Greater Dublin Area experienced the greatest rent pressure, with a surge of 7.5pc in accommodation costs. Costs are above the highs they reached before the housing bubble burst a decade ago.

In Dublin, the average cost of a new rental tenancy is above €1,500 a month, as restricted supply and population growth combine to put the squeeze on those depending on the private rental market.

The costs peak in south Dublin areas, including Stillorgan where the average monthly rent for a two-bed apartment is just over €2,000.

North

It is closely followed by Dundrum at €1,935 and Sandyford at €1,905.

Howth/Malahide is the only north Dublin area to feature in the top-10 most expensive rental areas according to the RTB, with an average monthly rent of just over €1,700.

The national average cost is now €1,054 a month, up from €990 a year earlier, according to the RTB and the Economic and Social Research Institute, which compiled the report.

It now costs €1,100 to rent in the Greater Dublin Area, which takes in Meath, Wicklow and Kildare.

Outside Dublin, the national average monthly rent is just short of €800 in the fourth quarter of last year, compared with the same period a year earlier.

The figures reflect the cost of new tenancies, and do not capture existing agreements, which may be benefiting from the restrictions on increases in the rent pressure zones.

RTB director Rosalind Carroll said despite the cost of renting continuing to rise, there was evidence of a slowdown in the rate of growth in Dublin, Cork and nationally.

Pressure

"The continued strong economic and demographic growth combined with restricted supply continues to put pressure on the rental market and those seeking a place to live," Ms Carroll said.

"The report shows that in the Dublin rental market, rents continue to increase (from €1,494 in Q3 to €1,511)," she added.

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