People new to the rental market are paying far more than those in existing tenancies, according to a new report.
The latest survey from the Residential Tenancies Board (RTB) shows the costs facing those with new tenancy arrangements increased by 9.1% over the course of last year.
It also found that in the final quarter of 2023 the average rent for such tenants was 16% more than that paid by those with an existing lease.
The RTB Rent Index for Q4 2023 found that nationally the standardised average rent in the last quarter of last year was higher for new tenancies than for existing tenancies (€1,595 vs €1,374), a difference of €221.
While rents in new tenancies were up 9.1% year-on-year, the increase of those in existing tenancies grew by almost half this at 5.9%.
The report for that the standardised average rent for new tenancies in Dublin in Q4 2023 was €2,098, or €293 (16.2%) higher than the standardised average rent for existing tenancies which stood at €1,805.
The standardised average rent for new tenancies in Cork in Q4 2023 was €1,400, or €242 (20.9%) higher than the standardised average rent for existing tenancies which stood at €1,158.
The report also found that there was a 31% fall in the number of tenancies that began toward the end of 2023, relative to the same three months a year earlier, with new lets dropping from 17,240, to 11,895.
There was a total of 56,451 new tenancies in 2023, down more than a fifth on the previous year.
The average monthly rent for a new tenancy in Dublin was €2,098. This compares with an average of €1,225 outside the Greater Dublin Area (GDA).
However, while prices for new tenancies increased by 6.5% over the course of 2023, they went up by 12.6% outside the GDA.
In every county new tenants pay a higher rent, relative to what sitting tenants pay.
The gap is most pronounced in Co Sligo, where there is a 36% difference - or €300 - between the cost of the average existing rent, compared to the price facing a new tenant.
Donegal, Westmeath and Limerick also recorded variations of more than a third in similar scenarios.
The difference is lowest in Co Louth, where new rents are 11% more costly.
The report also shows that Limerick recorded a 25% rent increase, year on year, for new tenancies. Rents in the city are now on average just €20 less than the comparable figure in Cork. Researchers say they are watching to see if this is a temporary adjustment or whether the narrowing of rental costs between both locations is more permanent.
The study, conducted in partnership with the Economic and Social Research Institute, gathered responses from 39,000 existing tenancies around Ireland.
The new tenancies index has data going back to 2007, while the existing tenancies index commenced in 2022.
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