Changes to Rent Pressure Zones needed to cope with growing population, Cabinet to be told

Irish Independent

06-05-2025

The report by the National Economic and Social Council (NESC) – the body that advises the Taoiseach on policy and strategy – outlines proposals to ensure future population growth is spread across Ireland's five largest cities.
Among its recommendations are that 'more flexible rent controls' are needed to increase housing supply.
This report is separate to an 'options paper' on RPZs which has been presented to Housing Minister James Browne.
That review outlines a number of options including allowing landlords to increase rents by more than the 2pc cap that is currently in place.
The NESC report on 'Deepening Compact Growth in Ireland' will ­further feed into the Government's thinking on what to do when RPZs expire at the end of this year.
RPZs were introduced in 2016 to try to calm soaring rents and have been extended ever since.
They will need to stay in place for at least another two years while an alternative system of rent controls is formulated, Housing Commission chairman John O'Connor has said.
The NESC report details how to ensure that at least half of the population growth between now and 2040 takes place within five cities and their suburbs. The Land Development Agency will have an important role in making this happen over the next 15 years.
At least 50pc of that growth should be in Dublin and the other half in four other cities: Galway, Cork, Limerick and Waterford, the report said.
Between 2016 to 2022, the share of population growth represented by the five cities was just 32pc.
The National Planning Framework target of having 40pc of new housing developments within existing, built-up areas is now being achieved, but the NESC said even more could be done.
The report, to be presented to the Cabinet by Taoiseach Micheál ­Martin, outlines the benefits of 'compact growth', including 'higher productivity and ­innovation, more sustainable travel, improved access to services and lower energy consumption'.
The report welcomes commitments in the Programme for Government relevant to compact growth, including the creation of a new strategic fund to invest in infrastructure, the enactment of a new Compulsory Purchase Order Bill and ensuring every local authority has an expanded vacant property team in place.
Other recommendations include: going further than the current target of having 40pc for new housing developments within existing built-up areas; increasing investment in cost-rental homes; developing a brownfield activation strategy; and encouraging 'densification of existing areas' including more use of corner sites, gardens and mews development.
It also recommends an increase in public investment to unlock land suited for desirable compact growth.
The NESC recommends the Government should, where possible, continue to seek reductions in the construction costs of apartments as well as houses and a 'more three-dimensional approach for planning in areas subject to the prospects of significant regeneration and change', to help people understand what is involved in new development and thereby facilitate deeper engagement.
Meanwhile, the Cabinet will also discuss its latest economic and fiscal projections. Finance Minister Paschal Donohoe will get approval for the first Annual Progress Report, which will be presented to the European Commission.
The report outlines how Ireland will comply with EU budget and debt rules, and replaces what used to be the Stability Programme Update.
The EU is allowing opt-outs from the fiscal rules to allow states to spend more on defence. But Ireland is not expected to be among the countries that will seek such an exemption.
Justice Minister Jim O'Callaghan is also expected to seek approval to extend the laws allowing outdoor seating for licensed premises for another six months until the end of November 2025.
The Civil Law (Miscellaneous Provisions) Act 2021 was introduced as a temporary, Covid-related provision to facilitate safer outdoor socialising.
The relevant provisions of the act can be extended for up to six months at a time by resolution of each House of the Oireachtas. The extension is ­requested to give clarity to licensed premises, local authorities and gardaí.