Significant Changes to Rent Pressure Zone Legislation

02 July 2021

The key reforms are:

Rent Pressure Zone (RPZ) Extension

All RPZs will be extended to the end of 2024.

Rent Reviews

  • The current cap of 4% on annual rent increases will be replaced and rents in RPZs will be restricted by inflation as recorded in the Harmonised Index of Consumer Prices (HICP) .
  • This will result in rent increases being more in line with general inflation, which is currently below 2%. This will significantly impact the Private Rented Sector.
  • Bi-annual rent reviews, once every 2 years,  will continue outside RPZs until 31 December 2024.

Other measures to be introduced under the Residential Tenancies (No.2) Bill 2021

  • Extension of the rent increase and eviction protections for ‘relevant person’ tenants. Broadly speaking, this includes those financially impacted by COVID-19 who are in arrears and at risk of losing their tenancy. These protections will be extended for a further 6 months to 12 January 2022.
  • Restricting upfront payments of rent or deposit required to be made by tenants to secure a tenancy to a total of two months’ rent (one month’s rent in advance and one month’s rent as a deposit).
  • Restricting advance rent payments that a tenant is required to pay during a tenancy to one month’s rent. Students living in student specific accommodation may choose to pay a greater amount of rent if they wish but cannot be required to do so.
  • Amendments to the termination notice period required in respect of tenancies/licences of student specific accommodation.


The reforms intended for Rent Pressure Zones and the other provisions of the new Residential Tenancies Bill will have a major impact on the Private Rented Sector in Ireland. 

For more information on the changes to the regime and how they may affect your business, 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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