Rent Pressure Zones Extension

The Irish Government has commenced the implementation of some of its proposed far-reaching reforms to residential tenancies legislation. In a development impacting both landlords and tenants in Ireland, Rent Pressure Zones have now been extended nationwide. In tandem, the Government has extended the application of Rent Pressure Zones for all areas until 28 February 2026. Our Real Estate team outlines the changes.

What you need to know

• Rent Pressure Zones, or 'RPZs', now apply nationwide following the enactment of the Residential Tenancies (Amendment) Act 2025
• The national rent cap, the lower of 2% or general inflation, will remain in place until 28 February 2026
• These changes are intended as an interim safeguard against rent inflation
• Further legislation is expected to enhance Ireland’s rent control framework, with updates anticipated in the coming months

We recently reviewed the proposals announced by the Government for significant changes to Irish residential tenancies legislation. We noted that RPZs would be extended throughout the entire country. Legislation relating to RPZs has now been signed into law with effect from 20 June 2025.

Rent Pressure Zones

RPZs were introduced in Ireland in late 2016, with the rent cap originally set at 4% per annum. The cap was subsequently revised to the lower of the general rate of inflation, or 2% per annum. RPZs had previously been designated by the Residential Tenancies Board based on criteria such as high rent levels and housing shortages, covering most of Dublin, Cork, Galway, and other high-demand areas.

Changes

The Residential Tenancies (Amendment) Act 2025 now extends RPZs to the entire country. The current rent cap will apply nationwide to all rented properties until 28 February 2026.

Comment

Before this legislation was signed into law, the Minister for Housing, Local Government and Heritage, James Browne TD, noted that further legislation will be required later this year to improve the rent control system. The changes made to RPZs were indicated to be an interim measure to safeguard tenants from high rent inflation.

We await details of the implementation of the further proposed reforms promised by the Government and will continue to monitor the situation.

Contact our Real Estate team

The content of this article is provided for information purposes only and does not constitute legal or other advice.