Rental Market Reforms

The Government has outlined major reforms to Ireland’s rental laws, with new rules applying to tenancies starting on or after 1 March 2026. The proposals introduce separate regimes for small and large landlords, new six-year minimum-duration tenancies and updated rent-control measures. This update is important for landlords, tenants, developers and agents who need to understand how rights, obligations and investment decisions may change. With different rules for pre- and post-2026 tenancies, the system is set to become more complex. Our Real Estate team explains the key changes and what to expect next.

The Irish Government recently published an update on the proposed changes to the residential landlord and tenant legislation. According to the update, the new policies will:

“...strengthen rent controls and tenancy protections for new tenancies created from 1 March 2026.”

However, while the Government update is helpful, we still have not seen the wording of the legislation.

The Government has also recently published its updated housing plan entitled Delivering Homes, Building Communities 2025–2030, which will also have an impact on the sector.

The stated purposes of the proposed changes are:

1. To protect tenants nationwide by ensuring all tenants benefit from rent protection.
2. To improve security of tenure for tenants by restricting “no fault evictions.” A no fault eviction is when a landlord ends a tenancy without the tenant having done anything wrong - that is, not due to rent arrears, anti-social behaviour or another breach of the lease.
3. To increase supply - Ireland is facing a shortage of rental homes, especially apartments. The reforms aim to encourage investment and development, which will encourage the building of new rental apartments. It will also slow down rent increases and moderate rent levels over time.
4. To create a fairer system which will better balance tenant protections with landlords’ needs.

It remains to be seen whether these aims will be achieved.

As with the existing residential landlord and tenant legislation, the changes will apply to private rented accommodation. These settings include:

• HAP (Housing Assistance Payment) and RAS (Rental Accommodation Scheme)
• Student-specific accommodation
• Approved housing body (AHB) accommodation, and
• Cost rental tenancies

As is the current position, where a renter shares the property with the owner, the Residential Tenancies Act 2004 Act does not apply. That will not change under this new scheme.

Distinction between large and small landlords

The recent publication has confirmed the following, which we understood to be the position following the previous Government announcement on 10 June 2025:

• A “Large” landlord is those with four or more tenancies, and
• A “Small” landlord is those with three or fewer tenancies

Generally, there is a distinction between tenancy and dwelling and it should be remembered that, depending on the facts, it is possible to have more than one tenancy in a building. Different rules, particularly around terminations, will apply depending on which category a landlord falls within.

Introduction of tenancies of minimum duration

When the legislation in this area was originally introduced back in 2004, it created Part IV Tenancies, i.e. a recurring four-year cycle. This was subsequently revised to a six-year recurring cycle and more recently again to the concept of a tenancy of unlimited duration.

However, the new legislation provides for tenancies of minimum duration, or “TMDs” for tenancies commenced on or after 1 March 2026. The “old rules” will continue to apply to tenancies created before that date.

A TMD will be a rolling six-year term during which a landlord can only terminate the tenancy in certain limited circumstances.

A tenancy will become a TMD in the following circumstances:

• The tenant has lived in the property for at least six months, and
• The landlord has not served a valid notice of termination during that time

This is the same test as the current Part IV regime which will continue for tenancies created prior to 1 March 2026.

While a landlord is restrained from terminating a TMD save only in limited permitted circumstances, a tenant will be entitled to end a TMD at any time provided the correct notice period is complied with.

Circumstances where large landlords can terminate TMDs

Large landlords will only be able to terminate a TMD in the following circumstances:

• The tenant is in breach of their obligations, or
• A property is no longer suitable for the tenant

In simple terms, the concept of “no fault” terminations will no longer apply to large landlords in the context of tenancies created on or after 1 March 2026. These circumstances, for instance, include where a landlord:

• Requires the property back for him/her self or a family member
• Intends to sell, or
• Intends to substantially refurbish or change the use of the property

Circumstances where small landlords can terminate TMDs

The circumstances for small landlords are less strict. They are permitted to terminate a TMD during the six-year period if the following arise:

• Hardship
• Homelessness
• The property is required for an immediate family member
• Returning from abroad
• Breach of tenant obligations
• The property no longer suitable

We expect that these requirements will be elaborated on in the legislation once introduced.

After each six-year term, a small landlord may end a TMD for broader reasons, namely the following:

• Selling
• Substantial refurbishment/renovation
• Landlord/family member use
• Change of use

Changes to rent increase rules

The changes proposed include a scheme of nationwide rent control whereby:

• Rent increases will be linked to inflation - according to the Consumer Price Index (CPI), and
• A 2% increase cap will apply during periods of high inflation

Importantly, newly built apartments and student-specific accommodation will not be subject to the 2% cap and will follow the CPI only.

When can landlords reset rents to market value?

Landlords will be entitled to reset rents where the following apply:

• A tenant leaves the property voluntarily
• A tenant breaches their obligations
• The property no longer meets the needs of the tenant, or
• At the end of each six-year tenancy

Importantly, resetting rents will not be allowed after "no fault" evictions meaning that landlords cannot terminate a tenancy in an effort to circumvent rent increase rules.

Will landlords be able to sell property subject to a TMD?

As is the case at the moment, all landlords are permitted to sell a property subject to a tenancy. However, under the new legislation, large landlords will no longer be able to rely on the grounds of sale as a reason to terminate a tenancy.

Small landlords will be permitted to sell their property with vacant possession at the end of a TMD for a limited period, as yet undefined, before the property rolls into another TMD.

In addition, small landlords will be permitted to terminate a tenancy on the grounds of sale if they satisfy the as yet undefined circumstance of “financial hardship”.

Conclusion

Tenancies starting on or after 1 March 2026 will fall under the new rules. This means there will now be two layers of distinction: one between small and large landlords, and another between pre- and post-1 March 2026 tenancies. Introducing these parallel regimes is likely to complicate an already complex framework and, in our view, will lead to more disputes.

Incidentally and unsurprisingly, in recent months, we have seen landlords who have four or more tenancies issuing termination notices on the grounds of sale.

We will continue to monitor any developments and provide updates.

For more information and expert advice, contact a member of our Real Estate team.

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

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