Entire country to be brought under Rent Pressure Zone in major change agreed by government
In a meeting tonight, leaders met and agreed on a new system of national rent control
Every tenancy in the country is set to be brought under a Rent Pressure Zone, Government leaders have agreed.
In a meeting tonight, leaders met and agreed on a new system of national rent control.
The current system, which caps yearly rent increases at 2pc or in line with inflation, will be retained.
Every area of the country will now be designated as an RPZ under the new national rent control system, meaning the remaining one fifth of tenants in Ireland not in an RPZ will benefit from rent controls.
Leaders this evening also agreed on stronger security of tenure protections for renters.
This, it is understood, will include an end to no fault evictions in the case of large landlords.
The move is one that goes against the recommendations in the report from Housing Commission.
In its report last year, the commission said while the rental market was both challenging for both renter and landlord, the RPZs were constraining landlords.
According to the report, it said the impact of RPZs has been mixed and the commission recommended changes to the system.
In particular, the report said the RPZ system should be reformed and a new system of 'reference rents' be established instead.
This would be landlords would be limited on how much they could increase rent by, and would be based off things like the size of the rental property and where it is located.
The commission also said regulations should continue between tenancies.
'If a tenancy ends the same regulations apply to the subsequent tenancy. This will discourage termination of tenancies that is designed to increase rental income,' the report said.
As reported in the Sunday Independent, the Government was considering new rules which will allow landlords to significantly hike rents beyond the current caps.
Under original the proposals, landlords would be allowed to increase rents to market rates in between tenancies of at least six years.
While current tenancies are expected to remain under the RPZ regulations, the cap would not apply to newly built apartments.
Currently, rents in a Rent Pressure Zone can only be increased by 2pc or in line with inflation, whichever is lower.
First introduced in 2016 to control the rapidly increasing rents in high demand areas like Dublin and Cork, it was a major intervention in the market.
Rent Pressure Zones were introduced in 2016. Photo: Stock image
News in 90 Seconds - Tuesday June 10
Since then, the scheme has steadily spread across the country with most areas now considered an RPZ.
Almost ten years after they were first introduced, and with the current regulations are due to expire at the end of this year, it had been anticipated that the current rules around RPZs would change.
The Government continues to be under pressure on the issue of housing, wth the rental sector a major focus, as the Opposition has swooped on the issue.
Raise the Roof campaign will hold a rally outside Leinster House on Tuesday next week at 6pm, calling for urgent Government action on Ireland's housing and homelessness crisis.
The rally is timed to coincide with a Private Members Motion tabled by Opposition parties in the Dáil, and will feature speakers from political parties, alongside a series of singers and spoken word performances.
The Raise the Roof campaign group is coordinated by the Irish Congress of Trade Unions, and includes trade unions, housing and homeless agencies, women's groups, human rights advocacy groups, and community organisations.
Speaking at a press conference to launch the rally, Ethel Buckley, SIPTU Deputy General Secretary said: 'Ten years into the housing crisis, and that crisis remains the greatest political failure of our time. Workers are being priced out of homes or can only rent or purchase with considerable financial burden.
'In the last 10 years rents and house prices have doubled - and in some areas more than doubled - while wages have increased by less than 40%. If anything, this gap has widened in the last couple of years. Rents and house prices are out of control.
'Alongside the human cost of this, we are seeing the serious knock on effects, with thousands of unfilled vacancies in key sectors, and young people once again choosing to emigrate.
'We are deeply concerned at the lack of urgency shown so far by this new government. A government that is content to play the role of helpless bystander to this ever-worsening emergency. What is needed now is a radical reset with sustained action to deliver secure, affordable housing.'
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