Dáil Éireann Debate, Tuesday - 22 October 2024
430. Deputy Seán Canney asked the Minister for Housing, Local Government and Heritage if he will review the rules to allow an exemption for landlords in rent pressure zones that have been introduced to vary the 2% increase on the rents they charge where they have not increased the rent for at least two years prior to the zones being introduced; and if he will make a statement on the matter. [42598/24]
View answerThe Residential Tenancies (No. 2) Act 2021 introduced measures in July 2021 to better protect tenants with affordability challenges by prohibiting any necessary rent increase in a Rent Pressure Zone (RPZ) from exceeding general inflation, as recorded by the Harmonised Index of Consumer Prices (HICP).
The Residential Tenancies (Amendment) Act 2021 provides, from 11 December 2021, for a cap of 2% per annum pro rata on rent increases in RPZs over the period since the last rent setting, where the inflation rate (as recorded by HICP) is higher. In effect and subject to limited exemptions, rents in RPZs may only increase by a maximum of 2% per annum pro rata during times of higher inflation. In all cases, section 19(1) of the Residential Tenancies Acts 2004-2024 prohibits the setting of a rent that exceeds market rent.
Part 25 of the Planning and Development Act 2024 amends the Residential Tenancies Acts 2002 to 2024 to extend the operation of rent controls for a further year until 31 December 2025 and to provide for related matters.
The Housing for All Action Plan Update, published in November 2023, includes a priority action to publish a review of the operation of the private rental sector. The Private Rental Sector Review was published in July 2024 - and can be accessed on my Department's website at the following link: www.gov.ie/en/publication/168d4-private-rental-sector-review/.
The review noted issues arising from the current system of rent controls and also the need to ensure that the regulatory system for the rental market adequately balances the interests of landlords and tenants. The review recommended a comprehensive examination of the current RPZ system in the light of market changes and experience in other jurisdictions, in advance of the expiry of RPZs at the end of 2025. The examination of the RPZ system will consider whether rent controls should be continued, adapted or removed.
My Department has requested the Housing Agency to undertake the review of RPZs, which will also examine the recommendation of the Housing Commission to establish a system of 'Reference Rents'. It is expected that this review will be completed by end of Q1 2025.
