Controls on rent increases for new build homes to be relaxed under new proposals
Controls on rent increases for new build homes will be relaxed under new plans to go to Cabinet on Tuesday.
However, existing tenancies will remain under the existing rent pressure zone system, which limits increases to the rate of inflation or 2%, whichever is lower.
Housing minister James Browne will bring his proposals for an overhaul of the RPZ system to a meeting of coalition leaders on Monday night and is expected to bring a memo to cabinet on Tuesday.
It is understood that the 2% cap in RPZs will remain in place for existing tenancies but that new tenancies will be more closely linked to the base rate of inflation.
It is expected that landlords will be able to change or reset rents between tenancies, a change from the current system which designates whether or not a home is in a rent pressure zone.
It it understood that Mr Browne wants this change alongside rental protections to prevent the likelihood of a landlord seeking to move people on or evict tenants.
In an unexpected move, the minister will also seek to legislate for minimum six-year terms for some renters. The landlord would be allowed reset the rent every six years to the current market rate.
The moves are part of an overall plan to attract international investment and kickstart the building of apartments particularly, as well as overhaul the RPZ system which was introduced in 2016 and was criticised by last year's Housing Commission report.
While the plans are yet to be finalised, they have already drawn some criticism from the opposition. Sinn Féin housing spokesman Eoin O Broin said that the plans would create a four-tier rental system and were "utter madness".
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