Rent pressure zones set to be extended across entire country
It's been almost a decade since
rent pressure zones
(RPZs) were introduced to curb
sharp spikes in rent
and cap increases at 2 per cent or the rate of inflation, whichever is the lower.
Initially they were confined to Dublin and other big cities but have since been extended across the State, to 24 of the 31 councils, and 111 of the 166 local electoral areas.
Castlebar, Co Mayo, and Tullow, Co Carlow, were the latest to be added to the list in May.
After a three-hour-long meeting of leaders last night, it was decided that a proposal be put at Cabinet today that RPZs would be extended to the whole country.
READ MORE
As well as Taoiseach
Micheál Martin
and Tánaiste
Simon Harris
, the meeting was attended by Minister for Housing James Browne, Minister for Finance Paschal Donohoe and Minister for Public Expenditure Jack Chambers.
Pat Leahy reports it was also confirmed that landlords would not be allowed to reset rent between tenancies, unless tenants have left voluntarily or have breached the tenancy agreement. In other words, a notice to quit will not be sufficient to allow a rent review.
As
the report states
: 'Housing advocates had warned the Government that allowing landlords to reset the rent between tenancies would result in many tenancies being terminated by the landlords in order to increase the rents.'
The import is that the extension of the RPZs plus the new clause on rent review will be seen to favour tenants rather than landlords.
For the first time also, landlords will be classified according the number of properties owned. At present, all landlords are treated the same regardless of how many properties they own. Now, smaller landlords will be categorised as such if they own three properties or less.
Here is Pat Leahy's
analysis of the proposed changes.
'Modest' increases in local property tax from 2026
There is also another big property-related article in The Irish Times this morning
setting out the expected increases in local property tax (LPT)
from next year.
There has been an increase of over 20 per cent in property prices since 2021, the last time changes to LPT were made.
The report has a preview of a memo Minister for Finance Paschal Donohoe is expected to bring to Cabinet this morning: 'Fearing substantial hikes in tax bills, the Government is expected to change the way the tax is calculated in advance of the next date for revaluation on November 1st of this year.'
The implications are that houses valued at under €240,000 will see their LPT bill increase by only €5 a year. Properties valued between €420,000 and €525,000 will see increases of €23, still relatively modest.
At the top tier there will be more substantial hikes. Those with properties valued between €1.995 million and €2.1 million will pay an extra €389 a year.
Israel war bonds to be debated again in Dáil
The last week in May in the Dáil was dominated by an intense debate over the role played by the Central Bank in authorising for the European markets bonds that have been issued by the state of Israel. The Government has argued it is a technical process that has fallen on our Central Bank to do for Europe and that Ireland has never bought bonds.
The Opposition has said the bonds are war bonds and the State or its institutions should have no part whatsoever in dealing with the bonds.
A Sinn Féin Private Members' Bill to effectively stop the Central Bank from dealing with them was defeated in the Dáil, but not before two Government TDs, Barry Heneghan and Gillian Toole, voted with the Opposition.
Now, after the week's recess, the same issue is being debated in the Dáil this week, on foot of a Private Members' motion being tabled by the Social Democrats. The four big Opposition parties have combined again to back it and held a press conference on the plinth. Part of the strategy is to put more pressure on Government backbenchers to abstain or vote against an issue where not all are comfortable with the Coalition's position.
There are
more details of the motion here
.
Best Reads
Fintan O'Toole focuses on a statistic that shows that
some students sitting State exams this week went to bed hungry last night
. We should be mortified, he writes.
Eoin Burke-Kennedy writes that the
Irish Fiscal Advisory Council has predicted another surge
in corporation tax.
Joe Humphreys's great Unthinkable column
asks should we be quite so smug
about Trump's tariffs?
Playbook
The Cabinet meets this morning with a big agenda, including Government concern over what retaliatory tariffs the EU will impose on the US; almost 500 new places in higher education to address key shortages of health and social care professionals; a new incentive scheme to retain air traffic controllers in the Air Corps; and a new antiterrorism Bill.
Full details are to be found
in this preview of the meeting
.
Dáil
14:00: Leaders' Questions
14:34: Order of Business
15:04: Bills for Introduction: Taxes Consolidation (Rights of Performers and Film Workers) (Amendment) Bill 2025 – First Stage
15:10: Taoiseach's Questions
15:55: Government Business: Statements on Housing
19:27: Private Members' Business (Sinn Féin): Motion re Urgent action on vacant Council Housing
21:27: Parliamentary Questions: Oral – Minister for Environment, Climate and Communications Darragh O'Brien
00:03: Dáil adjourns
Seanad
14:30: Commencement Matters
15:30: Order of Business
16:30: Government Business: Statements on Breast Cancer Services
18:45: Private Members' Business: Motion re Insurance Reform
20:45: Seanad adjourns
Committees
11.30: Artificial Intelligence
Research Ireland: Introduction to Artificial Intelligence
12.05: Comhchoiste na Gaeilge
An Plean Náisiúnta um Sheirbhísí Poiblí Gaeilge 2024-2030
15.00: Housing
Discussion on the Report of Housing Commission
15.00: Justice
Engagement on Policing Matters
18.00: Arts, Media, Communications
Prelegislative Scrutiny of revised General Scheme of the Broadcasting (Amendment) Bill
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Irish Independent
an hour ago
- Irish Independent
Fears new rent controls will lead to landlords hoarding properties
There are concerns that the Government's plans for a new system of rent controls will create a 'very big financial incentive' for landlords not to put properties on the market if they become vacant between now and next March. This would enable many landlords to set rents at market rates in March, instead of being tied into 2pc increases under the current Rent Pressure Zone (RPZ) rules. A government-commissioned review warned it could take four years before the new rules have any dampening effect on rising rents. A review of RPZs by the Housing Agency also warned that any hoped-for boost to housing construction arising from a reformed system, could be wiped out by global factors including a trade war. The agency recommended reform of the rent pressure zone system, saying this should 'incentivise a return to investment' after a sharp decline in the number of rental apartments being built. 'It will take at least three to four years for this investment to result in more homes being built, but in the longer term any increased supply of rental properties should have a dampening effect on rising rents,' it said. The review further warned that the reforms will not be enough to attract desired investment in investment, and further measures will be needed. Factors including a potential rise in interest rates mean that institutional investment 'might not return at the scale desired, or for the duration of time necessary, to reach housing targets'. It said: 'Externally driven inflation could be triggered by an escalation of geopolitical tensions or renewed stress in global supply chains. At the time of writing, the US had just announced a worldwide imposition of tariffs. 'As a result, the international macro framework is in a state of flux and there's high levels of uncertainty regarding the trajectory of interest rates in the near to medium-term.' I think the only way we can get rents down is by increasing supply As the opposition claimed that the proposed measures will increase rents, the Housing Minister James Browne, was unable to say when the changes would result in falling rents. 'I think the only way we can get rents down is by increasing supply,' he said. 'I expect rents to fall over time. What the particular length of time is, I wouldn't be able to predict.' Sinn Féin's housing spokesman Eoin Ó Broin said there is now a 'big financial incentive' for landlords not to bring properties on to the market if they become available between now and next March. 'Any new tenancy agreement created from the first of March next year will come in at the top market rent,' he said. 'If a new tenant moves into a rental property tomorrow, the RPZ rules will apply. So there is an economic incentive to wait and given the level of churn in the rental market, that will have an immediate impact.' Under the new plans, the RPZ system, which was due to expire at the end of the year, will in effect be extended nationwide. All existing tenancies will come under a 2pc cap or the rate of inflation, whichever is lower. Rent increases in new apartment developments will be capped at the level of inflation – in an effort to encourage new developments. New tenancies, created from next March onwards, will be set at market value and offer a six-year rolling tenancy, after which the rent can be reset and put back to the market rate. Large landlords, defined as those with four or more tenancies, will be banned from carrying out no-fault evictions. Smaller landlords can end tenancies via no-fault evictions in limited circumstances such as economic hardship or to move a family member in. But if they do so, they cannot reset the rent. The Government is looking at increasing fines for landlords who break eviction rules and is consulting the Attorney General on the matter. Mr Browne said the fines they should be 'higher' and 'substantial' but there are limits in increasing fines before it crosses into the jurisdiction of the courts. He said he would also 'like to see' a rents register that would bring transparency to what a property had charged in rent previously. Asked who would police the ban on resetting rents except in the case of no-fault evictions, Mr Browne said it would be the Residential Tenancies Board. Renters will pay for government policy failures The Social Democrats TD Rory Hearne warned the changes would lead to increased rental costs and incentivise evictions, adding: 'Renters will pay for government policy failures.' He said the no-fault eviction ban will not apply to at least half of all tenancies. 'There are huge loopholes here. It appears that tenants of large landlords will have no-fault protections, but tenants of smaller landlords – at least half the market – will not be covered,' he said. 'In these cases, we will see thousands and thousands of renting families exposed to higher rents and it will, as Focus Ireland said, be incentivising evictions.'
Irish Independent
an hour ago
- Irish Independent
The Irish Independent's View: RPZ change no quick solution, but leaders had to do something
No one set out to lead anyone on a merry dance, but for many it felt that way. Too many rash commitments on the delivery of new homes repeatedly came up short. Gone is the upbeat attitude with the recognition that something had to give. Housing Minister James Browne's announcement on changes to Rent Pressure Zones (RPZs) is a recognition of new realities. The zones are to be extended across the country, but landlords of newly built apartments have been empowered to increase rents in line with inflation. The change was forced on the Government because of an acute drop in the number of apartments being built. In March last year, there were 1,816 commencements, while in March this year the figure was just 160. Taoiseach Micheál Martin said the reasons for introducing the measures were twofold – to offer policy certainty and protection for renters and to boost supply. But the opposition is far from happy. Sinn Féin leader Mary Lou McDonald said it was effectively the 'death knell of Rent Pressure Zones'. People Before Profit-Solidarity's Paul Murphy told Mr Martin: 'Now you have said existing tenants will be capped at 2pc, new tenancies will be capped at Consumer Price Index levels, and this is the strongest set of rent protection measures we've ever had.' The need for these changes is further recognition of dysfunction in government policy over the years Mr Martin was adamant that existing tenants will see no change at the end of six-year tenancies. However, the country has to get up to 50,000 new houses a year – €20bn is required to reach this target, and this would not be provided by the State alone. 'The involvement of the State is enormous. It has to be balanced and supplemented with significant private sector investment,' he added. But renters need to know where they stand. As things are, private sector rents are already exceeding an average of €2,000 a month. Threshold, the charity that helps renters with housing problems, said the extension of the zones 'will provide comfort to those renters living in areas experiencing double-digit rent increases in recent years'. ADVERTISEMENT It also welcomed the limitations on no-fault evictions. Landlords will need to be monitored closely to ensure they are compliant with the new rules. The need for these changes is further recognition of dysfunction in government policy over the years. Mr Browne said there was a 'fine balance' to be struck as the State aims to attract investment while ensuring fair treatment for tenants. He has also pledged further measures such as a shake-up in planning rules in the coming weeks. However, he acknowledged this is not a 'silver bullet'. No one was expecting one, but the measures will be watched keenly for an indication that the days of firing blanks are over.
Irish Times
3 hours ago
- Irish Times
How to buy a home by yourself
'How in the name of GOD are single people meant to buy their own home?' That's the title of a Reddit thread where solo first-time buyers in Ireland trade war stories and seek advice. Having house-shared for 13 years, 'Michael' has worked his way up the ladder at work and lived like a monk for six years to get mortgage approval in principle. Now he finds himself repeatedly outbid by couples. Other solo buyers pile on with similar woes. READ MORE There's the odd apocryphal tale of the tenant whose landlord took pity and sold to them at a discount, or the lowball bid that was miraculously accepted – but solo buyers can't bank on miracles. If you're buying on your own, here's how to give yourself the best chance. Who are the solo buyers? If you're a solo first time buyer, you're not alone. Almost 30 per cent of first-time buyers are buying on their own, according to Central Bank figures for 2023. The average value of a first-time-buyer mortgage approved in April this year hit a record €330,123, up by more than 8 per cent in a year, according to Banking and Payments Federation Ireland (BPFI) figures. [ Move now or wait: First-time buyer and fixed mortgage rates Opens in new window ] First-time buyer lending limits of four times salary mean a single buyer would need earnings of €82,500, to borrow this amount. You will need a 10 per cent deposit too. That's about €33,000 if you are drawing down the average amount approved for first-time buyers nationally. Buying in Dublin is a different story and is 'extremely challenging' for solo buyers, says Ross Harrison of Dublin city-based mortgage broker Finplan. The median house price there is about €475,000. The majority of solo first-time buyers he sees work in tech or professional services and have higher-than-average salaries of €65,000 to €100,000. 'Those borrowing on a single income of between €60,000 and €80,000 are moving to Kildare,' says Harrison. Out in the commuter belt, Shane Tobin of Portlaoise-based Low Quotes mortgages agrees that it's not easy for solo first timers. 'They are typically borrowing in the region of €260,000 to €320,000, purchasing properties in the mid €300,000s and they are using the Help to Buy scheme. They couldn't buy without the Help to Buy,' says Harrison. The solo buyers he sees succeeding have significant savings, many get family support, and they will have to be open to relocating to more affordable regions, says Tobin. Ramp up If you're thinking of buying a first home, prepare for a lengthy on-ramp. Talk to a mortgage adviser at least 12 months out from purchasing and they will set you straight on wooing a lender. Bank statements that show a 'buy now pay later' habit, credit card debt, missed direct debits or someone routinely sliding into pay day on fumes really won't fly. 'We are seeing an awful lot of people using those [Klarna] facilities without realising the knock-on implications,' says Ross Harrison of Finplan. 'A bank will factor in that debt when assessing your ability to repay.' How to manage your pension in these volatile times Listen | 37:00 Use the 12 months before your mortgage application wisely, says Shane Tobin. 'A lender will look back at six to 12 months' bank statements, so you need to behave appropriately to be a serious contender to draw down a loan of €200,000 or €300,000.' Get forensic One of the most disheartening things for a buyer is being outbid. Where couples, who can borrow four times their combined income, or investors are competing for the same property, the solo buyer just doesn't have the same muscle. You can try to short-circuit some of this frustration by getting forensic about the type of first home you can most likely get over the line. If you're thinking of buying a first home, prepare for a lengthy on-ramp. Photograph: iStock With your 'four times income' borrowing number in mind, and your likely savings, use the Central Statistics Office's property prices by eircode app and the residential property price register to guide your search. Properties in Dún Laoghaire-Rathdown, for example, had the highest median price paid for a dwelling at €665,000, according to the CSO's residential property price index in March. By contrast, median prices in Dublin 10 were €311,000, or €440,000 in Dublin 15. The commuter belt widens options too. Median property prices range from €275,000 in Portlaoise to €280,000 in Arklow. In Drogheda the median price is €360,000, in Enfield it's €385,000, Naas is at €421,000 and Newbridge is €425,000, according to CSO figures. 'For people who are not open-minded about location, it's very difficult,' says Tobin. Solo buyers are opting for one- and two-bed apartments over houses too. 'A three-bed house used to be the first house 10 years ago, but that's an absolute luxury for the first-time buyer now.' [ Typical price paid for home by first-time buyer up €88,000 on five years ago Opens in new window ] Government schemes Many solo first-time buyers are availing of Government schemes to get them over the line. The Help to Buy scheme gives a refund of up to €30,000 of income tax and deposit interest tax you paid in Ireland over the four years before the year you apply. This can be used to bump up your house deposit, but it applies only to new-build homes valued at up to €500,000. Another option for first-time buyers is the shared equity, or First Home Scheme. This can be used in conjunction with the Help to Buy scheme. Under this scheme, the Government and participating banks pay up to 30 per cent of the cost of your new home (or 20 per cent if you're also getting Help to Buy), in return for a stake in the home. If you want, you can buy back the stake at any time, but you don't have to. It is aimed at closing the gap between what you might be able to afford and what you want to buy. 'It's becoming less of an issue for buyers that the Government would own equity in your home,' says Shane Tobin. [ Mortgages: If you're coming off a fixed rate now is the time to consider switching Opens in new window ] In the local authority areas of Dublin city, Dún Laoghaire-Rathdown, Fingal, South Dublin and Cork city there is a price limit of €475,000 for buying a new house, and €500,000 for an apartment. In Co Wicklow, the price limit is €475,000 for all properties. In Co Kildare and Galway City, it's €450,000 for all properties. In Co Meath and Co Cork it's €425,000. In Limerick city and county the price limit is €425,000 for houses and €450,000 for apartments. You must borrow the maximum available to you, so four times your income, and you must have a 10 per cent deposit of the value of the home, though this can come from the Help to Buy scheme. A teacher after 10 years' service, for example, will be able to borrow a maximum of about €261,000. By using Government schemes, they could potentially purchase a home for about €375,000. This is through a combination of €10,000 of their own savings and €30,000 from Help to Buy making up the deposit; personal borrowings of €261,000, with €74,000, that's 20 per cent of the purchase price of the home, coming from the First Home Scheme. Shop lenders Different lenders will suit different buyers. A broker can help you find the one most likely to get you over the line. Bank of Ireland tends to be more favourable than other banks towards first-time buyers purchasing one-bed apartments, says Ross Harrison. 'Some other banks want a deposit of 20 per cent for one-beds,' he says. In general, the lower your interest rate and the shorter the term, the less you will pay over the lifetime of the mortgage. First-time buyers will have competing priorities, however. If you don't have six months of pristine bank statements, or you are living with parents and can't show a track record of rental payments, new entrant Núa Money might suit you. They look at your net disposable income, not your banking history, to assess eligibility. They look at bonus income more favourably too. They also offer loans to immigrant visa holders who have been here for six months and have passed work probation. Tobin recently worked with a solo buyer with one dependant earning €37,500 who got mortgage approval for €130,000 with Núa Money. Not having to show proven repayment ability worked in their favour. 'They went sale agreed on a doer-upper in Tipperary costing €155,000,' says Tobin. First-time buyer rates for an 80 to 90 per cent loan at 4.85 per cent are higher than other banks and you must fix for three years. If you're a public-sector worker, the Flexi product from ICS enables you to borrow several points further up the salary scale than some other banks. The Flexi is not the most competitive interest rate, but for customers looking for maximum borrowings to get on the ladder, the initial interest rate may not be the biggest factor. For 90 per cent loan to value, rates are 4.4 per cent, fixed for five years. You'll pay interest only for the first two years, then your repayments will jump for the remainder for the fix. Borrowers should note their mortgage will be more expensive in the longer run due to the Flexi product's interest-only start. MoCo and Núa Money will lend two points up the salary scale to public-sector workers while Avant will lend one point higher. PTSB and Bank of Ireland don't offer the feature. AIB will also go three points higher. Timing Government grants are driving solo buyers to new builds, but with that can come some timing issues. If you reserve a new home, go sale agreed and request your loan offer, the offer is valid with most banks for between four and six months. If the build is delayed, the loan offer may expire, meaning you have to reapply with updated salary certs, bank statements and a full assessment of affordability 'We see this with many buying new builds where there is a delay on completion and buyers have to update their mortgage application and reapply,' says Harrison. Keep your bank statements clean until you get the keys. Extra costs Solo buyers must budget for extra costs by themselves too. Stamp duty is 1 per cent of the purchase price, slightly less for a new build. Budget about €3,000 for a €300,000 home. You should be budgeting €3,000 to €3,500 to cover legal fees and outlays, says Harrison. A property survey which the bank will require will cost between €300 and €600 plus VAT, again shop around. Most lenders require you to take out mortgage protection insurance. Budget €20 to €30 a month, depending on your age and health. If you're buying a property in a managed development, you'll have to budget for an annual property management fee.
