Dáil Éireann Debate, Thursday - 22 January 2026
195. Deputy Paul Murphy asked the Minister for Housing, Local Government and Heritage if he will amend the Residential Tenancies (Amendment) (No. 2) Bill 2025 to continue rent control between tenancies; and if he will make a statement on the matter. [4678/26]
View answerOn 14 October 2025, the Government approved the General Scheme of the Residential Tenancies (Amendment) (No. 2) Bill 2025, which is now the subject of priority legal drafting by the Office of Parliamentary Counsel. The Bill will amend the current system of rent controls and provide new measures to protect tenants, including stronger security of tenure, to come into effect for new tenancies created on or after 1 March 2026.
The modifications to rent controls have been informed by the findings of the Housing Agency review of Rent Pressure Zones and Potential Policy Options. This review was undertaken to assess the operation of Rent Pressure Zones (RPZs) since their introduction and consider their impact on the market and relevant stakeholders, including the retention of landlords and new investment. It was also to consider whether RPZs should continue without change or be removed, modified or replaced. The review involved engagement with a wide variety of stakeholders, including investors, representatives of landlord and tenant advocacy groups, academics and the Residential Tenancies Board (RTB).
The Review identified that Ireland’s current system does appear to be severe for two reasons, firstly it sets its rent cap at 2% or HICP, whichever is lower, meaning that rent increases may not keep pace with inflation, and secondly it does not allow for a resetting of rents to market rates when a tenancy ends. The linking of rent regulation to a property rather than a tenancy, as is the case with RPZs, was viewed as a more stringent system of rent control. The review recommended a modification of rent controls. It also recommended allowing landlords to reset rents to market levels between tenancies and providing for stronger tenant protections to guard against economic evictions.
A national rent control will be introduced to all tenancies which will limit rent increases for tenancies, other than new build apartments and student specific accommodation, to inflation (as per the Consumer Price Index (CPI)) up to a maximum of 2% per annum pro rata. For new build apartments and new student specific accommodation, rent increases will be capped at the level of inflation (i.e. the 2% cap will not apply); the aim is to support investment in such development.
In order to stimulate new investment and keep existing landlords in the market, resetting of rents to market value for new tenancies (i.e. a first time tenancy between parties) created on or after 1 March 2026. This will only be allowed if the previous tenant leaves of their own volition, or has breached their tenant obligations or the dwelling is no longer suitable to the accommodation needs of the tenant household. This measure will also facilitate landlords to reduce rents for tenants if they wish, knowing they would be able to reset to the market rent at the start of a new tenancy.
It is intended to continue, from 1 March 2026, to allow the rent for a new rental dwelling be set to market value upon the commencement of its first tenancy. Also, the first rent setting after a substantial change in the nature of a rented dwelling will also continue to be allowed to be set to market value.
The information provided in this reply is based on the policy measures approved by the Government on 10 June 2025 to come into effect on 1 March 2026, in order to boost investment in the supply of homes available for rent and keep existing landlords in the market. The Residential Tenancies (Amendment) Bill 2026 will be published as soon as possible.
A detailed communications campaign by my Department, in conjunction with the RTB, will continue to publicise the new legislative measures from 1 March 2026. Up-to-date information is available at: www.gov.ie/en/department-of-housing-local-government-and-heritage/publications/government-reforms-to-the-rental-sector-starting-1-march-2026/.
