Galway City has overtaken Cork City with the second-highest standardised average rent level between July and September of this year.
The Residential Tenancies Board (RTB) has published the quarterly Rent Index for the July September period (Q3) of 2020 which shows the national year-on-year growth rate has remained below 2 percent for two consecutive quarters for the first time since late 2012.
On an annual basis, rents grew nationally by 1.4 percent in the third quarter of this year, going from €1,239 in the third quarter of 2019 to €1,256 in same quarter this year.
In Cork, the standardised average rent in the city between July and September of this year was €1,220 while per month while Galway City stood at at €1,269 per month in Q3 2020.
In the second quarter of this year, Cork City’s average rent was €1,208 with Galway City slightly behind Cork at €1,169.
Out of all of the cities, Waterford City had the lowest standardised average rent of all the in Q3 2020 at €839 per month.
However, while annualised rental inflation rates in Dublin City, Cork City and Galway City were all below 2 percent, strong annual growth occurred in Waterford City at 8.8 percent and in Limerick City at 4.3 percent per annum.
In Q3 2020, eight counties had standardised average rents above €1,000 euros per month including Cork, Dublin, Galway, Kildare, Limerick, Louth, Meath, and Wicklow.
This is the first time that standardised average rents in Limerick exceeded €1,000 per month.
The RTB Rent Index is compiled in conjunction with the Economic and Social Research Institute (ESRI) and it is based on actual rents paid on 25,193 private tenancies registered with the RTB, which is made up of homes new to the rental sector, new tenancies in existing housing stock and renewals of existing tenancies.
Speaking on the findings for the third quarter of this year, Padraig McGoldrick, Interim Director of the RTB said that the impact of Covid-19 is obvious.
“The effect of Covid-19 on the rental sector can be seen once again in the third quarter of 2020. There is an ongoing moderation in rental price growth which can be seen throughout the country, most notably in Dublin and the Greater Dublin Area.
“We know Covid-19 has impacted on both landlords and tenants and the RTB are working to support both by ensuring that information is available on new rental legislation and supports are available for those affected.
“We continue to encourage those who are experiencing issues in their tenancies to visit our website for information on how to resolve issues,” he added.