Significant Proposed Reforms for Residential Tenancies

In a development set to significantly impact both landlords and tenants across Ireland, the Government has announced a far-reaching overhaul of residential tenancies legislation. With changes to rent controls and expansion of tenant protections, these proposed reforms are poised to reshape the rental market landscape. Our Real Estate team breaks down the key elements and highlights the critical considerations that landlords, investors, and tenants alike will need to be aware of.

The Government has announced proposals for significant changes to Irish residential tenancies legislation. In particular, reforms concerning rent cap rules and security of tenure protections for tenants are the key focus of the package of reforms.

The main changes

While we are awaiting further detail, likely to come to light in the Heads of a Bill expected to be approved shortly, here is what we know for now:

Rents

1. Rent Pressure Zones will be extended throughout the whole country.
2. Rent increases will be linked to inflation (CPI) but will be subject to a cap of 2% in times of higher inflation.
3. There will be a distinction between new build properties and existing stock. Rent increases for new apartment developments that are subject to a commencement notice to planning authorities on or after the date of the announcement, 10 June 2025, will be linked to CPI.
4. For new tenancy arrangements commenced on or after 1 March 2026, landlords will be entitled to reset rents to market rates at the end of each six-year tenancy unless a ‘no fault’ termination occurs.

Security of tenure protections

The Government announcement indicates that there will be a significant improvement to tenant protections for all new tenancies after 1 March 2026.

• There will be a distinction between larger and smaller landlords in terms of tenancy protections. Larger landlords with four tenancies or more will be subject to tighter restrictions on termination. Smaller landlords with three tenancies or less will have more leeway for ‘no fault’ evictions, but less than what they have currently.
• All tenancies will be capable of being terminated on the grounds of tenant breach, or where the dwelling is no longer suitable for the needs of the tenant’s household.
• For ‘no fault’ evictions:
  • Larger landlords will no longer be permitted to terminate a tenancy except in very limited circumstances. It is not yet clear what those circumstances will be.
  • Smaller landlords will only be permitted to terminate during a tenancy in instances where they face hardship (the examples given in the announcement are separation, homelessness, emigrant returning from abroad, or bankruptcy). A tenancy will also be terminable where the landlord requires the dwelling for an immediate family member.
• Rolling six-year tenancies of minimum duration will be introduced for smaller landlords. It is not clear what impact this development will have on fixed term tenancies, as we await further specific details. At the end of the six-year tenancies, smaller landlords will be entitled to terminate if there is an intention to sell or renovate the property. They will also be entitled to terminate where the property is required for a family member, or if there is an intention to change the use of the property.
• Landlords will be free to sell properties with tenants in situ at any time.

There is a lot of detail still to come to light on these proposed reforms, so we will be closely monitoring the publication of the Heads of the Bill and subsequent legislation. To allow sufficient time to develop the necessary legislation, the Government has indicated that the new tenancy protections will take effect from 1 March 2026. It is unclear whether this will apply to all changes or whether, for example, RPZs will be extended countrywide before then.

Conclusion

The Government has indicated that these reforms are aimed at boosting investments in the supply of homes for rent while extending protections for tenants. It will remain to be seen whether these changes will have the intended effect.

For further guidance on the proposed changes, please feel free to reach out to a member of our Real Estate team.

This article was contributed by Sinéad Counihan, Director of Knowledge.

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