Government Ministers have approved a cap of 2% per year on rent increases in Rent Pressure Zones.
The maximum amount of a rent increase that could be put on tenants will be linked to a rise of inflation, and wouldn't be able to go beyond 2%. If inflation rises by 1.2% - that would be the maximum rent increase allowed. Likewise, if inflation went up by 3.3% - the rent increase would not be allowed to be more than 2%.
A previous plan linking rent increases to inflation had been tabled in the past however the cap was then at 4%.
Cabinet has approved Darragh O'Brien's plan to cap rent increases at 2% in Rent Pressure Zones.
Increases will remain linked to inflation but with a cap of 2%
— Seán Defoe (@SeanDefoe) November 4, 2021
Speaking after its approval, Housing Minister Darragh O'Brien said, “this measure respects the constitutionally protected property rights of landlords and aims to safeguard continued investment in the sector by existing and new landlords to deliver the requisite supply of high-quality rental accommodation.
“In addition to significantly reducing the level of rent increases in RPZs (Rent Pressure Zones), the Bill will also address long-term security of tenure by introducing tenancies of indefinite duration.
“This Government is fully committed to improving the situation for renters in Ireland and we are making strides in this regard. We have tenants in situ in our first cost rental homes availing of rents that are up to 50% below the open market rate. Applications for other schemes have recently closed and from seeing the volume of applications we know that we need to significantly scale up cost rental in Ireland. Housing for All sets us on a path to achieving 18,000 cost rental homes between now and 2030 – an ambitious but achievable target.”