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.'
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Irish Daily Mirror
15 hours ago
- Irish Daily Mirror
Taoiseach slams 'over the top' rent backlash saying changes are just 'modest'
Taoiseach Micheál Martin has said that there has been an 'over the top' reaction to 'modest' Rent Pressure Zone changes, as he denied 'putting the fear into anyone'. Mr Martin also insisted that Rent Pressure Zones (RPZs) will absolutely be extended nationwide before the Dáil breaks for its summer recess. Rent Pressure Zones (RPZs) will be extended nationwide in the next few weeks to limit the annual increase in rents to 2 per cent per year on inflation. New rules will also be introduced to create six year contracts and contracts of indefinite duration. After six years, or any time a tenant leaves voluntarily, landlords will be able to reset the rents to market rates. In February, Mr Martin confirmed that RPZ legislation would be reviewed. When asked on RTE Radio if RPZs might be ended, Mr Martin said addressing housing issues will 'entail politically very difficult decisions' and that the lack of 'security of environment for investors' had to 'stop and change'. When asked in Louth today if he regretted flying any kites, he insisted that he never refused to rule out the RPZs being lifted entirely. Mr Martin also branded the reaction to the changes as 'over the top', stating that many would describe the plan as modest. The Taoiseach said: 'It wasn't flying any kite. You see the substance this week. The response was over the top, not from you [the media] but from other politicians. The response was completely over the top. 'Everybody knew there was a review of the RPZ. It was announced in October last year. I did not refuse [to commit to them being kept in place]. I said they were being reviewed. The response to what I said was completely exaggerated and over the top and motivated by politics, not from the media. 'But politicians came out and said in the Dáil in March, 'You're getting rid of our RPZs. I never said we were getting rid of RPZs. The Housing Agency was asked to do [a review]. It was commissioned in October last and people just raced away and said, 'We're getting rid of RPZs'. We never said we were getting rid of RPZs. 'What I did say was, unequivocally, we have to get private sector investment into housing. The Department of Finance are saying we need a €20 billion investment to get to 50,000. The State is doing €7bn to €8 billion. There has to be a private sector dimension to apartment building. 'The challenge I put to the opposition is, where are your solutions to get to the €20bn investment level that's estimated by the Department of Finance as necessary to underpin, you know, an increase from thirty odd thousand to 50,000. 'I said in the Dáil repeatedly, we are not getting rid of RPZ. I said repeatedly in exchanges with the Social Democrats, from Sinn Fein, but it was a great line. It was a great line to put the fear up people. I didn't put the fear up anybody.'
Irish Examiner
16 hours ago
- Irish Examiner
Taoiseach defends rent reform plans, slams 'over the top' political backlash
The Taoiseach has hit back at the 'over-the-top' reaction to 'modest' proposals around the rental system. The Government announced sweeping changes to the rental system on Tuesday that will cap rent increases at the rate of inflation. However, during periods of high inflation, hikes for most tenancies will be limited to a maximum of 2%. The changes will also end 'no-fault evictions' for larger landlords — those with four or more tenancies — who will no longer be allowed to terminate a tenancy where the tenant has met their obligations, except in very limited circumstances. The changes have been heavily criticised by the opposition, with Sinn Féin's Pearse Doherty telling the Dáil that 'the madness of this plan is matched only by the incompetence of the Government's approach.' "It is a complete and utter botch job," Mr Doherty. In response, Tánaiste Simon Harris said the plans will pass through the Oireachtas before the end of this Dáil term — in just five weeks — and accused the opposition of 'continuing to misinform people.' Speaking in Dundalk on Thursday, Micheál Martin said that the timeline would be met. Mr Martin described the RPZ (Rent Pressure Zone) move as 'significant' and said it would be 'followed by the Housing Activation Office and other measures.' "The RPZ measure is important because it sets the scene for the long-term [and a] more sustainable rental market." Mr Martin added that his original comments in the Irish Examiner in February had been seized upon by the opposition in a way he called 'over-the-top.' "I wasn't flying any kite. We've seen the substance this week. I think you guys (the media_ flew a few kites. The response was over the top, not from the media, but from other politicians. The response was completely over the top. Everybody knew there was a review of the RPZ. It was announced in October last year. "The response to what I said was completely exaggerated and over the top and motivated by politics, not from the media, but politicians. "We never said we were getting rid of RPZs. They were being reviewed with a view [to changing the system]. What I did say was, unequivocally, we have to get private sector investment into housing. And we do. "I said in the Dáil repeatedly, we're not getting rid of RPZs. I said repeatedly in exchanges with the Social Democrats and Sinn Fein, but it was a great line. It was a great line to put the fear up people. I didn't put the fear into anybody." The Taoiseach also rejected the claim that the timeline for passing the reforms had shifted due to criticism. In a technical briefing on the changes earlier this week, the five-week timeframe was not confirmed. Asked if this indicated that the Department of Housing was unaware of the Government's proposed schedule, Mr Martin said it did not. "The extension of the national (rent pressure zone) is going to be covered either in the planning bill that will be done before the summer recess, that's the bill that's rolling over the planning permissions, or you can do a short bill. There's no big deal about that." Read More Funding available for schools to procure mobile phone storage, department says
The Irish Sun
16 hours ago
- The Irish Sun
Abandoned F1 track lies overgrown and covered in rubbish 13 years after last race as £255m of debt is racked up
FORMULA ONE will have two Grand Prix events in Spain next year following the announcement of the 2026 calendar. The last time the country did this was between 2008 and 2012. 8 Fernando Alonso was the last winner of a race at the Valencia Street Circuit Credit: Getty Images - Getty 8 The track hosted five Grand Prix between 2008 and 2012 but ate up huge running costs Credit: Action Images - Reuters 8 It has now laid abandoned for 13 years with rubbish seen across the track 8 Weeds are now seen growing through the kerbs 8 Running costs totalled up to a staggering £255m in debts 8 The once picturesque harbour-view track still holds some scars of its past 8 Old sponsors and paint markings can be seen on the site The first was in Located near the port of Valencia, the F1 track record at the 3.4-mile circuit was set by Timo Glock in 2009 with a time of 1:38.683, though However, the track was far from popular with drivers for its mundane layout and eventually a lack of interest and funding saw F1 move away. The deal to bring it to F1 had allegedly been part of an election promise between former F1 supremo Bernie Ecclestone and Valmor Sport group, led by former motorcycle racer Jorge "Aspar" Martínez and READ MORE IN F1 But when Valmor went bankrupt through taking care of all the costs involved in running the races, the tracks seven-year deal was cut down to five and dug a financial hole worth £255million in debt. An estimated £87m is said to have been paid to Ecclestone, while there were also considerable costs for the construction of the circuit, television broadcasting and various invoices related to the organisation. All told, the Generalitat Valenciana had to fork out a bill of more than £85m to cover the losses. And the circuit itself has been left in a state of disrepair after being closed in 2013. Most read in Motorsport BEST ONLINE CASINOS - TOP SITES IN THE UK Some of it was converted back to walkways for the public. But the majority of the track looks like something out of an urban jungle. One of F1's most recognisable voices reveals Leclerc and Hamilton moments that will live with him forever Weeds have overtaken the slip roads on the site, rust has taken root on old safety barriers, and access tunnels have been flooded. Buildings on the site look every hour of their age, with a repurposed 19th-century warehouse showing signs of needing a major paint job. The track itself has not fared much better, with heaps of rubbish seen lying across it while weeds and plants grow out from under the kerbs of the circuit. Pit markings and tyre burns can also be seen over what was not cleared away, while there is even still some evidence of race sponsors from never-removed hoardings to painted pavement which has faded over time. Thieves have also had their way with what was left at the site. Anything valuable that might have been left over from the days of F1 has been gutted out. There was hope for the site in 2022 when an investment group was in talks with the City Council to reclaim the space, turning it into housing and flats for residents. 8
