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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.

Conclusion

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.

Discuss your real estate queries with Jamie Fitzmaurice now.


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