Ireland’s rental market showed some signs of easing in the second quarter of 2026, with Notices of Termination falling sharply after a surge earlier in the year.
But the latest Residential Tenancies Board (RTB) figures also show that affordability pressures remain significant. Rents for new tenancies increased by 9.1% year-on-year in the first quarter, more than twice the rate recorded for existing tenancies.
The figures provide a mixed picture of a rental market adjusting to major changes in tenancy and rent-setting rules introduced during 2026.
Notices of Termination fall sharply
The RTB received 4,031 Notices of Termination during Q2 2026.
That was 42.9% lower than in the first quarter and 14.7% below the level recorded in Q2 2025.
The decline is significant because the first quarter saw an unusually high number of notices following the introduction of new rental rules.
However, landlords selling properties remained the largest source of termination notices. Some 2,023 notices — 50.2% of the total — were issued where the landlord intended to sell.
The figures therefore point to a reduction in termination activity, but they do not necessarily mean that pressure on tenants has disappeared.
RTB Director Rosemary Steen said the unusually high Q1 volume appeared to have been temporary rather than the beginning of a sustained trend.
That distinction matters when assessing whether the rental market is genuinely becoming more stable.
New tenants continue to face higher rents
The biggest affordability concern in the latest figures is the difference between rents paid by new and existing tenants.
The RTB/ESRI Rent Index found that the standardised average rent for a new tenancy reached €1,839 per month in Q1 2026, an annual increase of 9.1%.
For existing tenancies, the standardised average rent was €1,513, up 4.2% over the same period.
That leaves a difference of €326 per month between the average rent paid by existing tenants and those entering new tenancies.
The gap illustrates why conditions can appear to be improving for established tenants while remaining difficult for people trying to find a home.
Someone already renting a property may be protected from some of the increases faced by a household entering the market today. For new renters, however, the cost of securing a tenancy remains substantially higher.
How much of the rent increase is linked to the new rules?
The timing of the increase in new-tenancy rents is also important.
Major changes to rent-setting rules took effect in March 2026, allowing rents to be reset between tenancies in circumstances set out under the new legislation.
ESRI Research Officer Dr Rachel Slaymaker said it was still too early to establish how much of the increase reflected an initial adjustment to the new rules and how much represented a more sustained change in rental-market conditions.
That makes the 9.1% figure important, but it should not automatically be interpreted as evidence that the new rules alone caused rents to rise.
Future quarters should provide a clearer indication of whether the increase was largely a one-off adjustment or whether faster growth in new-tenancy rents is becoming a persistent feature of the market.
Cost rental and AHB housing continue to expand
There was stronger growth in parts of the rental sector outside the traditional private market.
Registered cost-rental tenancies increased by 82.5% year-on-year to 6,186 in Q2 2026.
Approved Housing Body tenancies also increased, rising 11.5% year-on-year to 59,055. The RTB said this was the highest level recorded since the series began.
The growth is notable because cost-rental housing is intended to provide longer-term rental accommodation at more affordable levels, while Approved Housing Bodies play an important role in providing social and affordable housing.
However, the scale of growth should be viewed in context. Cost-rental housing is expanding rapidly, but its overall number of registered tenancies remains far smaller than the private rental sector.
The RTB recorded 241,072 registered private tenancies in Q2, an increase of 1.5% from a year earlier.
Enforcement is about to become more significant
The RTB is also preparing to take a stronger approach to compliance.
From 14 September 2026, the board will have new powers to issue fixed-payment notices for certain rental-law breaches.
The initial areas targeted include rent-setting and tenancy-registration requirements. A landlord can face a €200 fixed payment for certain rent-related breaches, while other specified breaches can attract a €100 payment.
The RTB also issued 1,133 compliance notices during Q2 to landlords for failure to register a tenancy.
This suggests that enforcement will become an increasingly important part of the rental system as the new rules settle in.
The latest figures therefore tell a more complicated story than either a worsening or improving rental market.
Termination notices have fallen substantially from their Q1 peak, while cost-rental and AHB housing are growing. Yet new-tenancy rents are rising much faster than rents for existing tenants, leaving a €326 monthly gap between the two groups.
For renters already in secure tenancies, the second-quarter figures offer some signs of stability. For households still searching for a home, the affordability problem remains much harder to ignore.
The next few quarters will be important in determining whether the fall in termination notices and the increase in new-tenancy rents represent temporary adjustments to the 2026 reforms or the beginning of a longer-term shift in Ireland’s rental market.
