Average rent drops slightly in Q2 but cost of renting remains high

THE cost of renting a property remains highest in the north-east of the Garden County, according to new data from the Residential Tenancies Board (RTB).

The RTB Rent Index for Quarter Two 2020 indicates that the average rent paid by private tenants in the county dropped slightly compared against the figure for the first three months of the year. However, average rents for 2020 remain above those in the same period last year. The agency has suggested the impact of the pandemic may reduce the rental prices for tenants.

Wicklow was also identified as one of seven counties where the standardised average rate continues to be above the €1,000 mark.

The report produced by the RTB and the ESRI covers the period when emergency tenant protections were put in place due to Covid-19. The analysis is based on new tenancies registered with the agency.

During the second quarter of 2020, the average rate in Wicklow was €1,236 compared with €1,286 in the first three months of the year. While the average rent had fallen on a quarterly basis by 3.8 per cent, the figure for the second quarter of 2020 was 2.7 per cent higher than the figure of €1,203 for the same period in 2019.

According to the RTB’s data, the standardised average rent in Wicklow has remained above €1,000 since the second quarter of 2016 The average rent has not fallen below €1,200 since the last three months of 2018.

The analysis also provides a breakdown of average rent at Local Electoral Area (LEA level) during the second quarter of 2020. Of the six LEAs, Greystones had the highest average rate of rent at €1,496.29 followed by Bray West at €1,384.12. Bray East LEA had an standardised average rent of €1,255.81 with the average rent in Wicklow LEA found to be €1,191.70. Arklow LEA’s standardised average rent was recorded as €1,126.35.

The average rent in the Baltinglass LEA was €1,080.70.

Nationally, the national standardised average rent decreased by 0.6 per cent from €1,233.58 in quarter one to €1,226.20 in quarter two of 2020. The year-on-year growth rate of rent levels for Quarter two of 2020 was found to be at its lowest level since 2012.

The RTB said there was a decrease in the number of new tenancies registered with the agency over the three months compared with the first quarter of 2020. The number of tendencies registered between April and June 2020 was 16,857, down from 20,787 between January and March 2020.

On a quarterly basis, the authors of the report said there had been ‘virtually no change’ in the national standardised average rate of rent for a house at €1,184, up 0.1 per cent. The standardised average rent for apartments stood at €1,281 in the second quarter of 2020.

The report’s authors suggest the pandemic may cause a rental price slowdown in Dublin and nearby commuting counties including Wicklow. However, the demand for rental properties are expected to remain high.