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Rental Sector

Dáil Éireann Debate, Thursday - 26 June 2025

Thursday, 26 June 2025

Ceisteanna (269)

Michael Cahill

Ceist:

269. Deputy Michael Cahill asked the Minister for Housing, Local Government and Heritage to review the case of landlords in the rent pressure zone in Kerry (details supplied); to clarify the definition of a large landlord; and if he will make a statement on the matter. [35089/25]

Amharc ar fhreagra

Freagraí scríofa

On 10 June 2025, the Government approved policy measures to provide for: the enhancement to rent controls and tenancy protections for new tenancies created (i.e. first time tenancy between parties) on/after 1 March 2026; and as an interim measure, to draft legislation, as a priority, on the basis of Heads provided to it to extend and expand the operation of Rent Pressure Zones (RPZs) across the entire country until 28 February 2026.

On 17 June 2025, the Government approved the publication of the Residential Tenancies (Amendment) Bill 2025 for priority enactment. The Residential Tenancies (Amendment) Act 2025 was signed into law on 19 June 2025. The Act came into operation on 20 June 2025 to immediately extend and expand the operation of Rent Pressure Zones (RPZs) to cover the entire country until 28 February 2026.

From now until 28 February 2026, annual rent increases in all tenancies are capped at the level of inflation (HICP) up to a maximum of 2%. After 1 March 2026, annual rent increases in tenancies will be capped at the level of inflation (CPI) up to a maximum of 2%. For new build apartments, annual rent increases will be capped at the level of inflation (CPI). The RTB RPZ calculator on https://rtb.ie/compliance/check-rpz-compliance/rpzcalculator/ will assist landlords to comply with the rent controls until 28 February 2026 and will be modified to assist with the implementation of the new rent control from 1 March 2026.

Further legislation will be developed later in 2025 to give effect to the policy proposals recently announced by Government, to regulate rent increases nationally and to introduce stronger protection for renters. Under the policy proposals announced, stronger tenancy protections will apply to new tenancies created from 1 March 2026. These changes will significantly enhance the current provision of tenancies of unlimited duration with the introduction of tenancies of minimum duration (TMD), involving rolling 6-year tenancies, for any new tenancy created from 1 March 2026 by a smaller landlord (with 3 or fewer tenancies) with a new tenant. In limited circumstances during a 6 year TMD, a smaller landlord will be allowed to end a tenancy. A smaller landlord will also be allowed to terminate a tenancy using the limited grounds under section 34 of the Residential Tenancies Acts 2004 to 2025 (the RTA) at the end of each 6-year period while the tenancy continues to exist.

A number of provisions will apply to mitigate the impact of TMDs on smaller landlords. A smaller landlord will be allowed to terminate a tenancy at any time if:

• the landlord intends to sell the rented dwelling due to financial hardship (to be prescribed in law) and does not wish to do so with the tenant(s) in situ;

• the landlord requires the property for himself/herself or an immediate family member (spouse/civil partner, child or parent) to occupy as a principal private residence;

• The tenant is breaching his/her tenancy obligations; or

• The property is no longer suitable to the accommodation needs of the tenant household.

In advance of the end of each 6-year period of a TMD, a smaller landlord will be allowed to serve a notice of termination under any of the existing grounds for termination. These include:

• the landlord intends to sell the property;

• the landlord/family member requires the property for occupation;

• the landlord intends to substantially refurbish/renovate the property; or

• the landlord intends to change the use of the property.

Larger landlords (with 4 or more tenancies) will not have the right to terminate a tenancy in the context of sale; landlord/family member occupation or change of use. A provision allowing for the necessary vacation of a rented dwelling (to protect tenants’ health and safety) during substantial refurbishment/renovation works will be considered. A larger landlord will have the right to terminate a tenancy where the tenant is breaching his/her tenancy obligations or the property is no longer suitable to the accommodation needs of the tenant household.

For all tenancies, landlords will have the right to reset the rent to market rent, where the rent is below market rent, between tenancies, where a tenant leaves of their own volition or has breached their tenant obligations.

For existing tenancies, landlords continue to have the right to terminate a tenancy in line with the provisions in place in the Residential Tenancies Acts that applied at the time the tenancy was created.

Legislation to give effect to these policy proposals is being prepared and will be published later this year.

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