Rents in new Offaly tenancies up by almost 9% in a year

The price rises and supply shortages that have characterised the Irish housing market in recent years were again underlined in a report this week which showed that rents paid by new tenants in Offaly in the first three months of this year were up by almost 9% compared to a year earlier.

The latest Rent Index Report was published by Residential Tenancies Board (RTB) on Tuesday, and it revealed that rents in new tenancies in Offaly grew by 8.9 per cent in the first quarter of 2022.

This was almost exactly in line with the national trend, with the rents paid by new tenants in the 26 counties rising by 9.2% on a year-on-year basis.

The standardised average rent in new tenancies in Offaly stood at €925.06, an increase of €75.38 on the figure a year earlier.

In addition to the higher rental prices, the number of registered new tenancies was in decline, down by 32% both in Offaly and nationally when compared with the opening three months of 2021.

The Rent Index Report is based on information about new tenancies registered with the RTB, and therefore it involves the actual rental price agreed by tenants, as opposed to the advertised asking price.

In Tullamore the standardised average rent paid by new tenants stood at €1,030, which was slightly lower than the average in other large towns in the region such as Athlone (€1,066), Portlaoise (€1,109), and Mullingar (€1,035).

Dublin, and the Greater Dublin Area, accounted for over half of all of the new tenancy agreements registered in the first quarter of this year, and the standardised average rent in newly registered tenancies nationally stood at €1,460.

Commenting on the findings of the Rent Index Report, Niall Byrne of the RTB said it showed a continued growth in rents nationally and a continued fall in the number of new tenancies being registered.

"These results are likely still indirectly impacted by Covid-19 public health measures along with constraints in supply and tenants choosing to stay longer in their existing tenancies," he said.

Mr Byrne added it was important to note that, because these figures relate to new tenancies only, the results "only provide us with a snapshot into a small proportion of the private rental sector in Ireland."

He pointed out that annual registration was introduced on April 4 this year, requiring landlords to register their tenancies on a yearly basis.

"Annual registration will provide the RTB with greater visibility on rents for both existing and new tenancies. This will mean that the RTB will be better able to provide new insights and information to tenants, landlords and the wider public while also helping inform the development of residential rental sector policy," he said.