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.
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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
RTÉ News
6 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.
Irish Times
6 hours ago
- Irish Times
Will the new rental reforms work? Many industry observers are sceptical
What's happening to the rules governing renting? A proposed overhaul of rules is going before Cabinet on Tuesday morning. It would see a significant shake-up in the rental market in the months ahead. What are the current rules? Rent Pressure Zones (RPZs) were introduced in 2016 to cap rent increases in areas where there was a very high demand for housing and rental homes. Initially, RPZs were confined to large urban centres but, as the housing crisis deepened, more and more areas were designated RPZs. In these locations, as it stands, rent increases cannot be greater than the rate of inflation or 2 per cent – whichever is lower. What are the changes proposed? The Government is planning to keep the caps for existing tenancies, at least to a large degree, while easing restrictions on rent increases for newly built homes. The plan – and it has yet to be agreed – would see the current RPZ annual caps not apply to new buildings constructed after a certain date, with the rents in qualifying properties instead to be tied to inflation. [ Rent controls to be eased for new builds in planned 'pressure zones' reform Opens in new window ] And why would the Government create what looks like a two-tiered rental system? In fairness, there is already a two-tiered system, with some properties in RPZs and some not, so what the Government is considering is a three-tiered system. READ MORE What is the market currently like for rents? Rents are climbing faster than at any point over the past 20 years, with the national monthly average between January and March surpassing €2,000 for the first time, according to a report from That compares to a low of just €765 in 2011. Why are rents climbing so fast? Much of that increase is down to a lack of supply. There were just 2,300 homes available to rent nationally on May 1st, down 14 per cent year-on-year and the third-lowest total for May in 20 years. In a properly functioning market that number should be closer to 10,000. Why is supply such an issue? There are many, many reasons but the author of the report, Trinity College Dublin economist Ronan Lyons, has said changes made to rent controls in 2021 when rent caps were reduced from 4 per cent to 2 per cent 'dramatically reduced the ability of Ireland's rental sector to attract the capital needed for new supply, the ultimate remedy for the shortage'. And this overhaul is aimed at attracting that capital, is that correct? That is the rationale, certainly. The thinking is that if rent restrictions are eased for new apartments, more money will pour into the sector and more apartments will be built, which will ease the pressure on the market as a whole. Will the owners of these new builds be able to charge what they want? They will be able to charge what the market will bear, for sure. However, there is some good news for people who are renting now: under the proposals the existing cap of 2 per cent will remain in place – at least for existing tenancies, but landlords will be able to increase the rent to the market rate between tenancies, something which is not permitted under the current rules. [ Ireland's rising rents: 'Our budget would have been €1,300 a month, there isn't even anything listed for that' Opens in new window ] Surely that will incentivise landlords to evict their current tenants so they can get new ones in and charge them more? That is undoubtedly a fear. Under the proposals going before Cabinet, there will be more protections put in place for renters for a minimum of six years. During that period, there will be restrictions put in place on no-fault evictions. At the end of a six-year period, a landlord will be able to reset the rent to the market rate. Opposition parties have questioned the adequacy of these planned protections. Will the changes work? That is the big, big question. It is undoubtedly in the Government's interests that it does work. Part of the Government's pitch to voters in the run-up to the last general election was that the State had turned a corner on housing and that the supply of new homes would hit 40,000 in 2024. Completions instead fell by 7 per cent to 30,000. Housing commencements, which indicate future supply, have also fallen off a cliff, with housing starts in the first quarter of 2025 eight times down on last year and at their at their lowest level since 2016. The rate of building when it comes to apartments is even worse. What are interested parties saying about the proposals? Many are unconvinced. The housing charity Threshold has welcomed the degree of security it will give to tenants if restrictions on no-fault evictions are imposed for a six-year period. However, it stressed that it could actually push more people into homelessness if the RPZs are diluted. Opposition parties have been lining up to give out about the proposals. Those voices will only get louder between now and next Tuesday when full details are outlined. The initial reaction from landlords and property investors is that there is little in the plans to support them in the short to medium term. Industry sources have also said that the new measures are 'partial ones' and contain levels of uncertainty that may not encourage the envisaged money to come in to the sector.
