Cost for renting for new tenants jumped by over 10% last year amid 'rip off' claims

Rents for new tenancies jumped by 11.6pc in the past year, despite the fact that most of the country is covered by Rental Pressure Zones (RPZs) which prohibits larger rent increases.

Under the law, rents in RPZs are not supposed to rise more than 2pc a year.

The Residential Tenancies Board (RTB) has published new data which shows the cost of new tenancies rising at twice the rate for sitting tenants.

The average rent nationally for a new tenancy is €1,574 – a rise of 11.6pc.

Rents in Dublin stand at €2,102, with rents outside the greater Dublin area averaging €1,167. 

The lowest average monthly cost for a new tenancy was €879 per month in Leitrim. 

A gap of €242 has emerged between what average sitting tenants are being charged and rents for new tenancies.

The average sitting tenant pays €1,332, up 5.3pc in a year.

That is the highest level of rent since the Residential Tenancies Board started recording the costs in 2007.

Social Democrats TD Cian O’Callaghan has said it is concerning that rents are rising by such figures.

Deputy O’Callaghan, who is the party’s housing spokesperson, said: “Rent Pressure Zone regulations are supposed to cap rent increases at 2 per cent per year. However, average rents for existing tenancies in Dublin, for example, which is covered by these regulations, rose by 5.5 per cent in the past 12 months.

“Furthermore, rents in new tenancies have risen by a staggering 11.6 per cent in 12 months. This is the largest yearly increase ever recorded by the Residential Tenancies Board.

“A common way for landlords to carry out illegal rent increases is to hike up the price in between tenancies. This could be a major contributing factor as to why new tenancies are so much more expensive than existing ones.

“We need to establish a register of rents so that incoming tenants can find out how much rent their predecessors paid. This will allow them to check if rent caps are being properly applied to their tenancy," he said.

New RPZ designations will come into effect for Shannon Local Electoral Area (LEA) and the Administrative Area of Westmeath County Council: Based on the Rent Pressure Zone criteria, Shannon Local Electoral Area (LEA) and the Administrative Area of Westmeath County Council have been designated by the Minister as Rent Pressure Zones as of today, November 30.   

Speaking on the publication of the report, Director of the RTB, Niall Byrne said: "The production of an index that can track rent developments in all rents across the private rental sector is a major step forward. Information is now available for sitting tenants which was not available in the previous Rent Index Reports.

"The RTB, in conjunction with the ESRI, is committed to publishing, and further developing, the new tenancy and existing tenancy rent indices. Over time, these indices will provide strong evidence and deeper insights into the private rental sector for the benefit of policymakers and the public," he said. 

Mr Byrne added: "The RTB is committed to ensuring compliance with rental law, particularly the requirements to register tenancies and to set lawful rents in RPZs.  These commitments are set out in the RTB’s Statement of Strategy 2023 -2025. The data now available to the RTB as a result of the requirement to renew tenancies annually provides very important information which the RTB can now use in planning its compliance and enforcement activities".