Rent controls to be eased for new builds in planned ‘pressure zones' reform
Restrictions on rent increases are to be eased for newly-built homes but the current caps would remain in place for existing tenancies under plans to be considered by the Government this week.
Decisions on the major overhaul of the
Rent Pressure Zone
(RPZ) system are expected to be made by the Coalition over the next 48 hours.
Any easing of the RPZ system is likely to be politically contentious and will be closely scrutinised by Opposition parties.
The reforms are being considered following a review of RPZs which was introduced in 2016 to cap rent increases in areas where there is a high demand for housing and rental homes.
READ MORE
Under the current system, rent increases in locations designated as RPZs cannot be greater than the rate of inflation or 2 per cent – whichever is lower.
There has been some concern that the RPZ system has negatively impacted on the level of private investment in new housing developments.
Under the proposals being considered by Government, the current RPZ annual caps would not apply to new buildings constructed after a certain date – a measure aimed at increasing private sector investment to deliver more housing.
The Irish Times understands that rents in the new-builds would instead be tied to inflation.
The current rent increase cap of 2 per cent annually would remain in place for existing tenancies, though
landlords
would be able to change the rents between tenancies, something they currently are not allowed to do.
The changes to the RPZ system would be accompanied by enhanced protection for renters in relation to security of tenure amounting to a minimum of six years.
There would be a restriction on no-fault evictions during this six year period – a measure that will require legislation.
The landlord would be allowed to reset the rent every six years to the market rate.
The Coalition leaders and senior Government ministers are expected to discuss the plans during a meeting on Monday evening.
Ultimately the proposals would then go to Cabinet on Tuesday morning for a final decision.
A Housing Commission report, published last July was critical of RPZs and proposed changing them to a 'reference rent' system that pegs rent increases to nearly homes of a similar quality.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Irish Sun
2 hours ago
- The Irish Sun
‘Cruel decision' blast over new rent cap shake-up as Irish renters brace for price hikes amid calls for more homes
OPPOSITION parties have blasted the government's rent shake up - with the Cabinet set to vote in an easing of controls this week. Landlords will be able to 3 Irish renters are set to brace for price hikes amid a major rent cap shake up Credit: Getty Images - Getty 3 Changes to the Rent Pressure Zones will be brought to Housing minister James Browne Credit: Brian Lawless/PA Wire Rents for newly-built Changes to the Rent Pressure Zones will be brought to Government by Minister for Housing Government sources said the move is aimed at giving investors certainty given they currently can make a loss when inflation goes above the two per cent mark. Other measures to close the 'yield' gap and around 'viability' will be taken by READ MORE IN IRISH NEWS For existing renters, nothing changes if they stay in their current tenancy. However if they move, a landlord can reset the rent for the new tenant at the market rate. Any rent increases after that would be capped at the existing two per cent rate. MOST READ ON THE IRISH SUN But last night Chaos in Dail as numerous TDs storm from Chamber amid new speaking time rules The party's housing spokesperson Eoin O'Broin said: 'Cabinet looks set to agree far-reaching and deeply damaging changes to the current Rent Pressure Zone rules. 'The government's plans for a four-tier rental market is utter madness. 'There will now be four different rent-setting rules and eviction rules for tenants; in RPZs and in existing tenancies; in RPZs and in new tenancies in existing rental stock; in RPZs and in new tenancies in newly built rental stock; and renters in tenancies outside RPZs. Any decision the Government takes in relation to RPZs in coming days cannot pull the rug from under renters." Fine Gael TD Deputy Michael Carrigy 'Renters are being punished for the government's own housing failures with even higher rip-off rents and greater uncertainty. 'If these landlords are given the right to resent rents to new market levels, this puts tens of thousands of renters with pre 2022 tenancy agreements at risk of eviction. 'At a time when rents… are already too high, the government's proposals will come as another body-blow to hard-pressed renters.' EVICTION INCREASE FEARS And He fumed: 'Lifting the 2 per cent rent cap is a cruel decision by a government captured by investor fund landlords. 'There is no guarantee removing these rent caps will lead to an increase in supply of rental properties. 'In fact, it will encourage the investor purchase of new build homes as rental properties – further pushing up house prices and locking home buyers out of the housing market. 'Without a no-fault eviction ban in place, lifting the 2 per cent rent cap will lead to increased evictions and homelessness as landlords evict tenants to get a new tenancy and bring the rent up to market rents.' RENT ALREADY HIGH Meanwhile, Chair of the Oireachtas Housing Committee, He explained: 'Any decision the Government takes in relation to RPZs in coming days cannot pull the rug from under renters. 'There can't be just some sort of cliff edge or some switch that just gets flicked in terms of supports and safeguards for renters. 'The level of rent people are paying in this country is extraordinarily high already and that is largely down to a lack of supply which must change. 'We have to ensure we have a viable housing market. "Our clear goal is to increase the supply of new homes.' 3 Sinn Fein housing spokesperson Eoin O'Broin branded the proposal 'utter madness' Credit: PA
Irish Times
3 hours ago
- Irish Times
Young people and AI
Sir, – In one of his first speeches as pope, Leo XIV outlined his priorities for his papacy. Interestingly, one of these is the challenges posed by artificial intelligence (AI). The pope believes that AI is a threat to 'humanity, justice and labour'. He said that this was one of the key reasons for him choosing the name Leo XIV. He had spoken previously about the impact of the industrial revolution on workers' rights. We are now arguably going through another 'industrial revolution' of sorts. Before, it was concerns that machines would replace people and take their jobs. Now it's the same but with AI. We adapted before and we can adapt again; not by trying to beat AI by being robots but by fully embracing our humanity – the qualities that set us apart from AI, qualities like our emotions, our ability to connect and build strong, trusting relationships and our ability to empathise. READ MORE If we are fully human, if we stop trying to beat AI at its own game, AI can never truly replace us, never truly do away with the need for real, human people in the workforce and in society. As a young person, I'm often asked the question, 'what do you want to be when you grow up?' Whatever answer I give, the response is usually: 'Oh, that job will be done away it; AI will be doing it in the future.' But I remain hopeful, faithful that I will be needed in society. And that AI can't replace humans if we are truly human, fully ourselves. – Yours, etc, TESS LIFFEY, Birr, Co Offaly.
RTÉ News
5 hours ago
- RTÉ News
Fraught days ahead for Government with planned changes to RPZs
The next few days will be fraught politically. The Government is preparing what it believes is an intricate balancing act between renters' rights and developers' ambitions. The logic underpinning this is that enhancing tenants' rights can be delivered in tandem with less strict rent caps. Therefore, investors will get back to building more homes and ultimately the supply shortage can be eased. The backdrop to this move is record high rents and the growing feeling among many that the social contract has been broken. It all suggests that this will be a hard sell. Opposition parties already believe that renters are being thrown under the bus. It is all part of the long awaited redraw of the Rent Pressure Zones (RPZs) where the annual rent hike is capped at 2%. In new buildings that cap will now be scrapped and instead rents will be linked to inflation. The proposal, which Minister for Housing James Browne will bring to Cabinet, will also allow landlords with existing properties to reset rents for new tenants to the market rate. After that they would be subject to the current 2% cap. In exchange tenants will get security of tenure for six years in a move that the Government believes will bring an end to no fault evictions. Questions are already being raised about just how secure current tenants are under these new changes. On the surface, at least they do not appear to be subject to significant change. However, Sinn Féin's Eoin Ó Broin believes the proposals will put tens of thousands of tenants with pre-2022 tenancies at risk. That is because their landlords can evict them for no reason at the end of their six-year tenancy under the law as it stands. That means these landlords would have the right to reset rents to new market levels after these tenants' six-year tenancies come to an end. This is one of many pertinent questions about the changes that will inevitably lead to heated exchanges in the Dáil next Tuesday.
