New rent rules 'reasonable', says Minister, as govt to scrap cap on rent increases for new tenants
THE REFORMED RENT regulations will be 'well-balanced' and 'reasonable,' the housing minister has said, as the government is expected to scrap the 2% cap on rent increases for new tenancies.
Under the proposal, rents for existing tenants in the entire country will be brought under control under the current Rent Pressure Zone (RPZ) system that is currently in place.
However, the new plans will mean that the 2% rent cap will not apply to apartments built after a certain date, a move the government is hoping will increase apartment construction by the private sector.
Landlords will also be allowed to hike rents in instances where tenants leave homes voluntarily.
Where a notice to quit is served on a tenant, the landlord can't reset the rent, which the government hopes will remove any economic incentive for landlords to evict their tenants.
Browne said it's about balancing protecting renters and attracting investment.
'What we're doing is protecting renters. We're doubling down on renters rights,' he said, speaking ahead of Cabinet this morning.
Tenancy protections will be brought in, according to a government source, who said that protecting renters is a key component. It is expected that new tenancies, while facing higher rents, will see a six-year security of tenure rolled out.
Browne said the expansion of RPZs is 'one strand' of a package that will be implemented in the next few weeks.
'If we don't do something, every rent in this country goes back to market, and I'm not prepared to let that happen.'
'Supply, supply, supply'
Homelessness
reached another record high
in April, with 4,675 children having accessed emergency accommodation in that month.
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The homelessness figures cover those living in emergency accommodation but not those rough sleeping, refugees, asylum seekers, individuals in domestic violence shelters, or those experiencing 'hidden homelessness', such as sleeping in cars, on couches, or other unsuitable living conditions.
'I am very conscious of homeless people. We shouldn't have any homeless people in this country,' said Browne.
'The way to address homelessness, the way [that] people can get homes that they need to live in, is through supply, supply, supply, supply.'
Opposition parties have been calling for a reintroduction of the ban on no fault evictions.
Asked whether he will consider such a move, Browne said: 'In fairness, everybody has been trying to do their best, but we do know the only way to address the homelessness situation, the crisis … is supply. And that's what I'm trying to do today, is address that supply issue.'
Despite criticism from experts and homelessness charities, Browne says he's confident his plan will work, as he's 'put an awful lot of thought into it'.
Housing protest
Next week, the Raise the Roof campaign group will hold a demonstration outside Leinster House that is likely to heap further criticism on the government.
The protest is seen as a reboot of the campaign and will coincide with a cross-party private members' bill calling for emergency action on the housing crisis.
People Before Profit TD Paul Murphy said the Government's new plan could amount to it 'unleashing the landlords on renters'.
Ethel Buckley, deputy general secretary of SIPTU, said she also fears the move will include 'greater sweeteners for investors'.
Mike Allen, director of advocacy at Focus Ireland, said while there has been an increase in the amount of affordable housing built, it has not curbed homelessness and a dedicated homelessness plan is needed.
He said homelessness organisations don't see protesting as an act of opposition to the Government, but rather as part of a democratic process where issues are raised.
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RTÉ News
2 hours ago
- RTÉ News
Entire country could become RPZ under new plan
The entire country could be made a Rent Pressure Zone before the Dáil rises for its summer break in mid-July. It's understood the Minister for Housing, James Browne, is advancing legislative plans to that effect and hopes the measure can become law swiftly. It is anticipated that Opposition parties will their give their support to fast-track the process, even though they vociferously oppose other parts of the Government's rental reforms which were passed by the Cabinet on Tuesday. The change would mean that all tenancy increases would be limited to an annual cap of 2%, or the rate of inflation - whichever is lower. As it stands, roughly a fifth of tenancies are outside of RPZs and therefore are not subject to the 2% cap. A swift introduction of legislation would limit the ability of landlords outside of RPZ's to increase rents beyond the cap limit before the law is changed. After Tuesday's Cabinet decision, Minister Browne indicated that the designation of the entire country as an RPZ would be taken swiftly. Sinn Féin leader Mary Lou McDonald said in the Dáil that the measure should be introduced this week, adding that her party would back the Oireachtas sitting for as long as is necessary to get the job done. The party's housing spokesperson Eoin Ó Broin said the Government is "scrambling around" under pressure from the Opposition. "The department told journalists on Tuesday that the RPZ extension would take place in March 2026. After Opposition highlighted that this would put renters outside RPZs at risk of huge rent hikes, in anticipation of the application of the caps the Government changed the plan and are proposing to deal with this issue more quickly," he said. "We welcome this but continue to insist that the Government scrap the rest of their proposed changes to RPZs as these will lead to a hollowing out of the existing protections and significant rent increases for tens of thousands of renters."


Extra.ie
19 hours ago
- Extra.ie
Explainer: Rent Pressure Zones and what new changes could mean
Rent Pressure Zones (RPZs) are set to be extended nationally for the first time since they were implemented. The new national rent control system means that the areas, where rent is capped, means that the zones will be extended to all areas in the country in order to try and combat rapidly rising rents. The implementation of RPZs has been controversial since they were first introduced, but the Housing Minister James Browne has said that the extensions will be brought in once the current RPZ deal ends on December 31. Rent Pressure Zones (RPZs) are set to be extended nationally for the first time since they were implemented. Pic: Getty Images Rent Pressure Zones (RPZs) are, essentially, parts of the country where the rent is capped. Initially introduced in parts of Dublin and Cork, RPZs saw rent increases being capped at 4% in these zones, but have changed since July 2021 during the onset of the cost of living crisis — where rents were capped either at 2% or the rate of inflation, whichever was lower. So, for example, if the rate of inflation was 1.9% or lower, then rent increases would be capped at 1.9%. Any higher than 2%, and increases would be capped at 2%. Landlords that have four or more properties will be unable to carry out 'no fault' evictions. Pic: Shutterstock The changes are set to be brought before Cabinet by Minister for Housing, James Browne, but the government agreed to the new system to be retained for existing tenancies, who will keep their rent cap of 2% kept. For landlords, they will be able to hike rents up if a tenant leaves the rented accommodation voluntarily, but not if they're evicted. When it comes to evictions, 'no fault' evictions will be banned for landlords who own four or more properties, while smaller landlords who own three or less will be able to evict tenants on circumstances such as financial difficulties or if they plan to have a family member moving in. Minister for Housing, Local Government and Heritage James Browne said that he hopes that the new rules will bring rent prices down. Pic: Sam Boal/Collins Photos New tenancies that are created from March 1, 2026 will be set at market value and have a minimum six-year rolling tenancy, with the rent being able to 'reset' and put back on to the market in 2032. Prohibition of setting rents above market value will also remain prohibited. While the government leaders have welcomed the move, there has been some pushback/skepticism from opposition parties. Minister Browne said that he's hoping the new expansion of the rules will see rents fall over time, but admitted 'What that particular length of time is, I won't be able to predict.' He added that he hopes tenants will report rule-breaking landlords to the RTB, saying 'Nobody should be able to game the system,' and hopes that fines can be increased. However, there has been some pushback — with Labour's housing spokesperson Conor Sheehan saying that the government were 'making it up as they go along.' '[The] Government need to clarify what exactly they are proposing in terms of any proposed ban on no-fault evictions which must be watertight and unequivocal,' Mr Sheehan said. 'The devil will be in the detail in relation to this and we need to see the proposals when they are published.'


Irish Examiner
19 hours ago
- Irish Examiner
Rent control changes will make student accommodation crisis 'a lot worse', Dáil committee told
Further and higher education minister James Lawless has been accused of signing off on a decision that will deepen the accommodation crisis for students. Solidarity TD Paul Murphy levelled the criticism towards Mr Lawless as he attended the Oireachtas committee on further and higher education and research on Wednesday. Mr Murphy noted in the minister's opening statement to the committee, he referred to the lack of affordable accommodation as a 'big barrier' for students attending tertiary education. 'Yet, you are part of the Government that yesterday signed off on a plan that is going to make that crisis for students a lot worse," Mr Murphy said. "Students are arguably the group that is hit hardest, so students who are in rental accommodation will effectively not have any rental protection whatsoever. They won't be covered by 2%, it won't be covered by CPI, because the vast majority of students in private rented accommodation change tenancies very regularly every year, and therefore every time they go back and rent again, their rent will be reset to market rate. Mr Murphy added: 'When asked about it, you say that you'll be meeting with [housing] minister [James] Browne to trash out how this will work. 'I don't understand. You're there at the Cabinet. Student accommodation is one of the biggest issues in higher education. How have you not already thought this through? "Are you saying that the rules won't apply as they've been announced yesterday? Are you saying that there will be some extra protection for students in private rented accommodation? Why have you signed off on a decision that's going to deepen the accommodation crisis for students?' Mr Lawless rejected the criticism in an at times tense exchange with Mr Murphy. The plans will come into effect next March, he said. 'There's a lot of water in the bridge between now and next March." He plans to sit down with Mr Browne and 'delve into the detail about how it affected the student accommodation sector', he said. 'It's not appropriate, in my view, to have a robust engagement on a housing initiative that was launched yesterday by a different minister and a different department. 'We will work out the detail for every sector, and from my perspective, for the student accommodation sector, between now and March, and hopefully a lot sooner.' When asked by Mr Murphy if he could promise students they would not face market increases every time they leave a tenancy, Mr Lawless said it would be 'extremely unhelpful and unwise' for him to speculate about 'the future outworkings of a plan' that is yet to be thrashed into detail from his particular side. Committee chair Erin McGreehan said she did not think it was fair to interrogate the minister on plans that were not finalised yet. 'Respectfully, I think your job as chair is not to protect the minister from questioning,' Mr Murphy said.