Landlords could face stiffer fines for breaking rent rules
The Government is considering higher fines for landlords who breach rental rules in the wake of cabinet approving plans to overhaul the sector.
Government on Tuesday agreed to extend Rent Pressure Zones (RPZs) across the country while also allowing higher rent increases in new-build apartments.
Minister for Housing James Browne said the level of fines was being looked at to see 'how much can we increase those fines'.
However, he was not yet able to say what level the higher fines might come in at. There was a level after which it would be more appropriate for the courts to impose a fine, he said, rather than the Residential Tenancies Board (RTB) which is to be responsible for policing the new regime.
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Briefing reporters after Cabinet on Tuesday, Mr Browne was unable to offer a specific timeline on when he believed rents would come down, saying it would only happen after increased supply and investment which he believed would follow from the reforms agreed. He would only say he expected rents to fall over time.
'What that particular length of time is, I wouldn't be able to predict,' he said.
The new rules will allow rents in new build apartments to be raised above the current limit of 2 per cent after six years, while also ending 'no fault evictions' for landlords with four or more tenancies.
Under the new rules, the circumstances where a smaller landlord can evict someone in order to move in a family member will be tightened. A restriction will be introduced on an eviction being allowed only when an immediate family member needs the accommodation, or when the landlord is facing bankruptcy, insolvency or 'some other particular hardship'.
If a landlord exercises their right to break a tenancy, they will not be allowed to reset the rent, Mr Browne said - meaning there would not be an economic incentive to engineer an eviction. All landlords will be able to sell a property with the tenant remaining in situ at any time.
Landlords will not be allowed to reset rents during tenancies created before the end of next February.
The Minister also said there would be further funding and support for the RTB which will be tasked with enforcing the rules.
'The Government wishes to put the sector on notice today that from the 1st of March 2026, stronger tenant protections will apply,' he said.
From next March larger landlords - classified as those having four or more tenancies – will not be able to put a 'no fault' eviction in place. Mr Browne said tenancies will be for an unlimited time, with a 'minimum duration' of six years, which he said would be a 'real leap forward' for tenant protections.
Under the reforms, only new build apartments will be able to increase rents by more than 2 per cent currently allowed under the Rent Pressure Zone legislation.
This will be limited to increases equivalent to the rate of inflation at the time. That will only apply to apartments being commenced from today, so it will be several years before these units come to the market.
'The changes I'm making today will have a significant impact for our rental sector, making much needed investment more attractive while strengthening the protections and providing greater certainty for renters,' he said.
He said there was a 'fine balance' to be struck as the State aims to attract investment in the apartment building sector while ensuring fair treatment for tenants. Mr Browne is promising a suite of further measures, including planning extensions and planning exemptions in the coming weeks.
'This is not being presented as a silver bullet. This is to strike a balance, to bring clarity and to bring certainty,' he said. 'Without all of these things we cannot ramp up the supply needed, and I'm determined and ambitious to get this right.'
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