Latest news with #RPZ
The Journal
a day ago
- Business
- The Journal
Taoiseach says decision on whether to scrap rent caps expected in next week
A DECISION ON whether the Government will scrap or retain Rent Pressure Zones (RPZs) is expected in the next week, Taoiseach Micheál Martin has said. The Taoiseach caused panic earlier this year when he said the Government was considering getting rid of the intervention which limits how much landlords can increase rent for properties in certain areas. The Government has been assessing whether an alternative system, which protects renters but, as the Taoiseach has said, 'also enables people to have a clear, stable environment in which to invest', can be established. It is understood that the new plan will form part of the Government's new housing plan, which is set to be published by July. Senior sources have told The Journal that it is likely that there will be no cliff edge or sudden rent increases for tenants currently in tenancies. However, landlords may be given the right to reset rents between tenancies. RPZs are in parts of the country where rents are highest and rising, and where households have the greatest difficulty finding affordable accommodation. Rents in an RPZ cannot be increased by more than the general rate of inflation or 2% per year, whichever is lower. Advertisement They were first introduced in Dublin and Cork in 2016 for a period of three years, but RPZs have since been expanded across the country. They were to remain in place until 31 December 2024 but last May, the Government agreed to extend them until 31 December 2025 . Replacing the use of RPZs was a recommendation of a landmark report by the Housing Commission last year. This was because it said the available evidence about the effectiveness of RPZ is 'mixed'. The Housing Commission recommended that a system of 'reference rents' be established in its place. The system of 'reference rents' would peg rent increases to a reference rent for local dwellings of similar quality. The Housing Commission said such a reference should be reviewed at regular intervals. 'Rent would not rise more than a certain percentage above this reference rent over a specific period,' noted the Housing Commission. It added that unsubsidised market rental dwellings should solely inform reference rents and that the percentage rent increase allowed should take account of relevant factors such as 'management and maintenance costs, interest rates, household incomes and affordability'. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
The Journal
19-05-2025
- Business
- The Journal
Rental prices rising at near 20-year high as Limerick rents shoot up towards Dublin levels
AVERAGE LIMERICK MARKET rental prices have shot upwards by 20.4% in the first three months of this year compared to the same period last year – resulting in an average price almost equalling that of the capital city. The figures from the latest report show that rental prices nationwide are soaring to approach Dublin's. Limerick city's average market rent price has reached €2,405 in Q1 of this year. In Dublin, where average market rental prices have grown by 5.8% in the same time, average prices are €2,540. Nationally, rents rose by 7.3% on average, judging by open-market rental prices compared to the previous year, and now sit at an average of €2,053 per month. In the past three months alone, market rents rose by an average of 3.4%, one of the largest three-month increases in the last two decades. In Dublin, various areas had disparate average market rent pricing: north county Dublin had the lowest of €2,371, while south county Dublin is reported as nearing €2,800. Another notable finding is that in Connacht, the cost of renting a room has risen by 11% on average in comparison with the same period the year before. Advertisement The spike in prices is, once again, paired with a significant lack of available housing for rent across Ireland. There were just over 2,300 homes available to rent nationwide this month, down 14% year-on-year. This is the third lowest total for May in twenty years and close to half the 2015-2019 average for availability of homes to rent. A similar finding was also reported in housing report issued near the end of March. The housing report, which covered houses for sale in Q1, found that price inflation of houses in Ireland is at an eight-year high. Author of the report, economist Ronan Lyons, pointed to the last government's reversal of policy decisions made by the 2016-2020 government as causing further damage to Ireland's rental market. 'Together with the change in external conditions and a sharp tightening of Rent Pressure Zones, in effect making them one of the strictest rent control regimes in the world, this had a catastrophic effect on the supply pipeline,' Lyons wrote within the report. 'The irony is that the last government scrapped pro-supply policies just as they were beginning to show their effects – with market rents in Dublin largely static in 2023, due to lots of new completions, even as rents surged in other cities. 'Instead, policy relied on increases in direct funding, rather than channeling others' savings, to try to keep completions up.' An imminent reform of Rent Pressure Zones (RPZ) has been suggested by members of government, which Lyons has said is 'long overdue'. A recent ERSI report stated that RPZs have been successful in curbing rental inflation despite a 'clear need' for reform. Related Reads Dublin building collapse example of why derelict site levy should rise, says councillor Shared equity scheme gets two more years - but Sinn Féin says it will 'make things worse' RPZ changes will have 'significant impact' says Minister, who claims he understands renters' fears Taoiseach Micheál Martin said in March that the government is assessing whether an alternative system 'which protects renters but also enables people to have a clear, stable environment in which to invest' can be established. It is understood the new plan will form part of the government's new housing plan , which is set to be published before the summer. Sinn Féin's spokesperson on housing, TD Eoin Ó Broin, said that the government's 'failure to deliver a sufficient volume of social, affordable rental and affordable purchase homes' is the reason behind rising rents nationally. He said that too many people are being forced into a shrinking private rental sector as a result. 'Government must introduce an emergency three-year ban on rent increases and put a full month's rent back into every private tenant's pocket through a fully refundable tax credit,' he said, alongside a call for an acceleration on the building of social and affordable homes. Average market rents, and year-on-year change – major cities – 2025 Q1 Dublin: €2,540, up 5.8% Cork city: €2,213, up 13.6% Limerick city: €2,405, up 20.4% Galway city: €2,304, up 12.6% Waterford city: €1,735, up 9.9% Rest of the country: €1,645, up 7.2% Journal Media Ltd has shareholders in common with publisher Distilled Media Group. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
BBC News
16-05-2025
- Politics
- BBC News
Bristol City Council discusses new resident parking zones plans
Plans are being considered to create more resident parking zones (RPZ) to combat traffic and parking issues in Bristol City Council introduced them, the zones in Bishopston, St Andrews, St Werburghs, Ashley Down, Totterdown, Windmill Hill and Bedminster, would become areas where only residents with a permit would be allowed to a meeting on Thursday, representatives raised concerns around costs and the size of the proposed and current zones while some said people were "chomping at the bit" for parking chair Ed Plowden said the council would "probably not" be able to put forward a scheme that all councillors wanted, but would look at recommendations. Green councillor for St George West Rob Bryher, suggested the council should, in the meantime, consider proximity to the city centre and existing schemes."[We should also consider] whether you can actually park a vehicle in the area if you're a resident," he said."There are some communities that are chomping at the bit to get this kind of parking management implemented and it's been a long time they've waiting."[So], I do think it's good to have some clear timelines for when it's coming back to the committee." Labour councillor for Southmead Kaz Self said her main concern was finding an RPZ fee that would suit people on a low income."There are people in Southmead ward who are not going to have the same level of income as someone in Clifton so, there's an issue about how much an RPZ rate would be," she funding has not been formally allocated the council has proposed to use income generated from the Clean Air Zone scheme to fund any new RPZ of city transport Adam Crowther said the committee will take everything into consideration."We will look at how much it would cost and how many resources would be needed to bring a decision paper back to the committee, if possible in September, if not then it might be in October," he said.
The Journal
13-05-2025
- Business
- The Journal
First Home Scheme to be extended for another two years out to June 2027
THE FIRST HOME Scheme is to be extended for another two years at Cabinet today. Housing Minister James Browne will also seek approval for an additional €30 million in funding for the scheme, which will match commitments by the banks participating in the scheme. The First Home Scheme is a shared equity scheme for first-time buyers that involves the government and participating banks paying up to 30% of the cost of the home in exchange for a stake in it, which can later be bought back by the home buyer. Currently, the scheme is only available to first-time buyers who are purchasing a newly built property or building their own. Advertisement Following today's approval, the scheme will be in operation for another two years until 1 June 2027. During the election, the former housing minister Darragh O'Brien along with Taoiseach Micheál Martin spoke in favour of expanding the scheme to include second-hand homes. Fine Gael also pledged to broaden the First Home Scheme so that first-time buyers purchasing a second-hand home are eligible for the support. The programme for government includes a commitment to expand the scheme for first-time buyers of second hand homes, while also promising to increase targets and extend the supports out to 2030. The housing minister told The Journal last week that such a move is being examined, stating that concerns have been raised that expanding the programme out to second-hand homes could increase house prices. 'Some people feel that it would actually increase the prices for those properties. So we're examining it. It's not something that's going to be done in the immediacy, but it is examined as part of the new housing plan,' said Browne. Read Next Related Reads RPZ changes will have 'significant impact' says Minister, who claims he understands renters' fears Chaos of housing tsar controversy is a symptom of a longer running dysfunction in Housing Such concerns have been raised by members of the opposition in the past. The First Home Scheme progress report for Q1 2025 noted that since its launch to the end of the first quarter 15,356 people have registered for the scheme. There have been 6,774 approvals for individuals or families for the scheme with 3,323 drawdowns used to finance the purchase of new home. The government's new housing plan which is set to outline further housing interventions is due to be published in July. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
The Journal
07-05-2025
- Business
- The Journal
RPZ changes will have 'significant impact' says Minister, who claims he understands renters' fears
PROPOSED CHANGES TO the Rent Pressure Zone (RPZ) rules will have a 'significant impact', according to Housing Minister James Browne, who also said the government wants to 'strike a balance' in terms of driving supply while protecting renters. The minister said he has received a report from the Housing Agency, which includes a review of the rental sector, and that he is studying the recommendations it contains. It is understood the minister will take a few weeks to consider the paper and the options presented in it about the future of RPZs. Browne said there are a lot of 'moving parts' to the report, but that he plans to make a decision quickly on whether to lift the rent caps or not. 'No matter what decision to make, it'll have significant impact. I want to protect renters. That's both renters who are currently renting, but also those who are living at homes with their parents who want to get out to rent. We have a major issue with supply or the lack of supply, in particular in Dublin,' he said. Advertisement 'We have to find that balance,' added the minister who said there will be work done over the next couple of weeks to reach the 'right decision'. Browne said he wants to ensure renters are protected, but also that he wants to increase housing supply. Lifting rent caps Some of the measures under consideration is understood to be the lifting of rent caps for new build apartment blocks, with new tenancies, on developments on brownfield sites. There is also speculation that those in existing tenancies will see their rents stay within the RPZ rule, which allows for a 2% increase every two years. However, if a tenancy ends, landlords could have an option of increasing the rent for the new tenant above the 2%. The minister said he understood the fears of renters who fear what the future holds. 'That's why we want to make that decision relatively quickly, so this is not something that's going to hang around them the next few months, we'll be making those decisions quite quickly so they know where they stand,' said the minister. Read Next Related Reads Taoiseach says no decisions made yet on Rent Pressure Zone changes Renters 'bracing themselves' for increases as Taoiseach slammed over rent pressure zone comments 'But renters very much are to the forefront of my concerns,' he added. He also said that the government doesn't want to create a situation whereby they are trying to 'solve one problem and then we create an affordability piece'. 'There's already an affordability challenge out there for renters, so it's a difficult challenge we have in front of us. I'm confident we'll make the right decision, but we're not going to be rushed into it at the same time. We need to make that decision quickly so renters fears are allayed,' said Browne. The Irish Property Owners Association (IPOA) met with the housing minister last week to discuss the rental market and raised concerns over the RPZ rules which it says are impacting landlords. Mary Conway, Chairperson of the IPOA said private landlords must be supported to ensure they reinvest and remain in the market, at the risk of losing affordable properties from the rental market. Readers like you are keeping these stories free for everyone... A mix of advertising and supporting contributions helps keep paywalls away from valuable information like this article. Over 5,000 readers like you have already stepped up and support us with a monthly payment or a once-off donation. Learn More Support The Journal
