19 new locations across 11 counties have been designated as Rent Pressure Zones (RPZs) with it coming into effect on the 2nd July following reforms to the Rental Tenancies Act. Once an area becomes an RPZ then landlords are limited to a maximum of 4% rental increase each year and the data, as published by the Residential Tenancies Board show that approximately two-thirds of rental properties are covered by RPZs.
According to the latest Rent Index from the Residential Tenancies Board (RTB), figures show that between January to the end of March that the national average rental price was €1,169 per month and that signifies an increase of €90 from 2018 at €1,079 in the same period last year. The report says that year on year growth of the national standardised average rent rose to 8.3% in Q1 2019. As expected, growth remains high in Dublin with the average price of rent at €1,662 per month and this shows an increase of 8.5% (€70) on 2018 figures however; rental inflation has seen a rise of 9.6% year on year in areas outside the Greater Dublin area (GDA).
The report also notes that there continues to be a difference in new tenants and renewed ones with average rental prices for new tenants at €1,245 per month compared to €984 for renewed tenancies. As mentioned, the highest average rent is at €1,662 for Dublin and with Leitrim reporting the lowest average rent at €537 per month. The biggest annual increase has been seen in Waterford City between January and March with an increase of 13.7% to €826 compared to 2018. The lowest rents in Q1 2019 are in Donegal, Leitrim and Longford with average rents below €600 euros per month. The annual growth rate was lowest in Kildare at 3.3% followed by Wexford at 4.1%. Galway City average rental prices stood at €1,093 for Q1 2019 and rents in Limerick City increased 12.3% annually to €941.
Existing Rent Pressure Zones (RPZs) legislation has also been extended to the 31st of December in 2021 and the RTB can investigate and sanction in cases that breach Residential Tenancy Law relating to RPZs, false notices or non-registration of a tenancy. With sanctions ranging from a caution or a fine that could go up to €15,000, the RTB is making many legislative changes. Other legislative changes include, landlords using the RPZs exemption to notify the RTB and all notices of termination where the tenancy has ended are required to be notified and copied to the RTB within 28 days of the tenancy ending.
The full list of the 19 new pressure zones is as below:
- Fermoy LEA, Co Cork
- Midleton LEA, Co Cork
- Athenry-Oranmore LEA, Co Galway
- Gort-Kinvara LEA, Co Galway
- Kilkenny LEA, Co Kilkenny
- Portlaoise LEA, Co Laois
- Graiguecullen-Portarlington LEA, Co Laois
- Limerick City West LEA, Co Limerick
- Limerick City North LEA, Co Limerick
- Dundalk-Carlingford LEA, Co Louth
- Dundalk South LEA, Co Louth
- Ardee LEA, Co Louth
- Kells LEA, Co Meath
- Trim LEA, Co Meath
- Waterford City South LEA, Co Waterford
- Waterford City East LEA, Co Waterford
- Athlone LEA, Co Westmeath
- Gorey LEA, Co Wexford
- Arklow LEA, Co Wicklow
For more details on the latest report and legislations check out the RTB website.