Rent Pressure Zones (RPZs) are set to be extended nationally in Ireland for the first time since they were implemented.
The new national rent control system means that the zones where rent is capped will be extended to all areas in the country in order to try and combat rapidly rising rents.
The implementation of RPZs has been controversial since they were first introduced, but the Housing Minister James Browne has said that the extensions will be brought in once the current RPZ deal ends on December 31.
What are Rent Pressure Zones?
Rent Pressure Zones are, essentially, parts of the country where the rent is capped.
Initially introduced in parts of Dublin and Cork, RPZs saw rent increases being capped at 4% in these zones, but have changed since July 2021, during the onset of the cost of living crisis — where rents were capped either at 2% or the rate of inflation, whichever was lower.
So, for example, if the rate of inflation was 1.9% or lower, then rent increases would be capped at 1.9%. Any higher than 2%, and increases would be capped at 2%.
What are the new changes?
The changes are set to be brought before Cabinet by Minister for Housing, James Browne, but the government agreed to the new system to be retained for existing tenancies, who will keep their rent cap of 2% kept.
For landlords, they will be able to hike rents up if a tenant leaves the rented accommodation voluntarily, but not if they’re evicted.
When it comes to evictions, ‘no fault’ evictions will be banned for landlords who own four or more properties, while smaller landlords who own three or less will be able to evict tenants on circumstances such as financial difficulties or if they plan to have a family member moving in.
New tenancies that are created from March 1, 2026 will be set at market value and have a minimum six-year rolling tenancy, with the rent being able to ‘reset’ and put back on to the market in 2032. Prohibition of setting rents above market value will also remain prohibited.
How have TDs reacted?
While the government leaders have welcomed the move, there has been some pushback/skepticism from opposition parties.
Minister Browne said that he’s hoping the new expansion of the rules will see rents fall over time, but admitted "What that particular length of time is, I won’t be able to predict."
He added that he hopes tenants will report rule-breaking landlords to the RTB, saying, "Nobody should be able to game the system," and hopes that fines can be increased.
However, there has been some pushback — with Labour’s housing spokesperson Conor Sheehan saying that the government were "making it up as they go along."
"[The] Government need to clarify what exactly they are proposing in terms of any proposed ban on no-fault evictions which must be watertight and unequivocal," Mr. Sheehan said.
"The devil will be in the detail in relation to this and we need to see the proposals when they are published."
*This article was originally published on Extra.ie.
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