DARRAGH O'BRIEN TD
  • HOME
  • About Darragh
  • News
  • Parliamentary Questions
    • Housing, Planning & Local Government PQ's
    • School PQs
    • Foreign Affairs PQS
    • Oral Questions
  • Newsletters
  • Videos
  • PHOTOS
  • FIANNA FAIL
  • CONTACT
  • DATA Protection Statement

News

Government Bill to put 2% cap on rent increases in Rent Pressure Zones

16/11/2021

 
- Ban on rent increases exceeding inflation under Harmonised Index of Consumer Prices (HICP) will continue, subject to a new cap of 2% per annum on any rent increase in a Rent Pressure Zone (RPZ)
 
- Legislation also provides for tenancies of unlimited duration to enhance security of tenure for tenants
Tuesday 16 November 2021
The Minister for Housing, Local Government and Heritage, Darragh O’Brien TD, has welcomed the publication today of the Residential Tenancies (Amendment) (No. 2) Bill 2021. The legislation will cap rent increases at 2% per annum in Rent Pressure Zones (RPZs). This new cap will only operate when general inflation is higher than 2%.
The Bill also provides for tenancies of unlimited duration, a key reform committed to under Housing for All, the Government’s recently published plan to create a sustainable housing system in Ireland. The Bill will be progressed to enactment as a matter of priority. The rent increase cap will apply immediately upon enactment.
The previous cap of 4% on annual rent increases was replaced on 16 July 2021, with rent increases in RPZs currently prohibited from exceeding general inflation as recorded in the Harmonised Index of Consumer Prices (HICP). The aim was to bring about far lower rent increases for the estimated 74% of all tenancies which are in RPZs. HICP averaged 0.73% over the three years to July 2021. Given the unexpectedly fast rise in inflation, a rent increase cap of 2% per annum will apply under this Bill when the HICP inflation rate is higher.
Commenting Minister O’Brien said, “When introducing the legislation to link any rent increases to HICP inflation in July, I was very clear on the need to carefully monitor inflation. At that time, HICP inflation averaged 0.73% per annum over the previous three years but had risen to 1.6% per annum in the year ending June 2021.
“Given the unexpectedly fast rise in HICP inflation, I quickly moved to engage with the office of the Attorney General and secured Government approval to introduce a 2% cap on rent increases in RPZs. This Bill respects the constitutionally protected property rights of landlords and aims to safeguard continued investment in the sector by existing and new landlords to deliver the requisite supply of high-quality rental accommodation.
“In addition to significantly reducing the level of rent increases in RPZs, the Bill also addresses long-term security of tenure by introducing tenancies of unlimited duration. This is a key commitment in Housing for All, our new housing Plan for Ireland.
“The early publication of this Bill and the clear focus on its early enactment demonstrates the Government’s strong commitment to improving the situation for renters in Ireland. We are making strides in this regard. Affordability is one of the key challenges in the rental market and tackling this is one of the central plinths of Housing for All. This Bill will help and I look forward to debating the Bill this week in the Oireachtas. We now have tenants in situ in our first cost rental homes, availing of rents which are up to 50% below the open market rate.
“Applications for other schemes have recently closed and from seeing the volume of applications, we know that we need to significantly scale up cost rental accommodation in Ireland. Housing for All sets us on a path to delivering 18,000 cost rental homes between now and 2030 – an ambitious but achievable target,” he concluded.
The legislation proposes to provide enhanced tenancy protection by making a ‘Part 4’ tenancy one of unlimited duration after a tenant has been in place for six months and not subject to expiry at the end of a six-year term (at the discretion of the landlord).
It is intended that this would apply to new tenancies commencing six months or more after enactment of this Bill. In addition, where any existing tenancy is renewed after this time, it will become a tenancy of unlimited duration.

Comments are closed.
    Picture

    NEWS

    Archives

    April 2025
    March 2025
    February 2025
    January 2025
    December 2024
    November 2024
    October 2024
    September 2024
    August 2024
    July 2024
    June 2024
    May 2024
    April 2024
    March 2024
    February 2024
    January 2024
    December 2023
    November 2023
    October 2023
    September 2023
    August 2023
    July 2023
    June 2023
    May 2023
    April 2023
    March 2023
    February 2023
    January 2023
    December 2022
    November 2022
    October 2022
    September 2022
    July 2022
    June 2022
    May 2022
    April 2022
    March 2022
    February 2022
    January 2022
    December 2021
    November 2021
    October 2021
    September 2021
    August 2021
    July 2021
    June 2021
    May 2021
    April 2021
    March 2021
    February 2021
    January 2021
    December 2020
    November 2020
    October 2020
    September 2020
    August 2020
    July 2020
    June 2020
    May 2020
    April 2020
    March 2020
    February 2020
    January 2020
    December 2019
    November 2019
    October 2019
    September 2019
    August 2019
    July 2019
    June 2019
    May 2019
    April 2019
    March 2019
    February 2019
    January 2019
    December 2018
    November 2018
    October 2018
    September 2018
    August 2018
    July 2018
    June 2018
    May 2018
    April 2018
    March 2018
    February 2018
    January 2018
    December 2017
    November 2017
    October 2017
    September 2017
    August 2017
    July 2017
    June 2017
    May 2017
    April 2017
    March 2017
    February 2017
    January 2017
    December 2016
    November 2016
    October 2016
    September 2016
    August 2016
    July 2016
    June 2016
    May 2016
    April 2016
    March 2016
    February 2016
    January 2016
    December 2015
    October 2015

Darragh O'Brien TD


Address

Darragh O'Brien TD
Leinster House
Kildare Street
Dublin 2

Telephone

T:  01-6183802

Email

For all constituency related queries please don’t hesitate to contact:
Email: [email protected]
Phone: 01-6183802
Postal Address: Dáil Éireann, Leinster House, Kildare Street, Dublin 2.

For all Department of Climate, Environment and Energy related queries please don't hesitate to contact:
Email: [email protected]
Phone: 01-6782000
Postal Address: Tom Johnson House, Haddington Road, Dublin 4, D04 K7X4.
Website: www.gov.ie/decc/

For  all Department of Transport related queries please don't hesitate to contact:
Email: [email protected]
Phone: 01-6041062
Postal Address: Department of Transport, Leeson Lane, Dublin 2, D02 TR60.
Website:
www.gov.ie/transport/
 




  • HOME
  • About Darragh
  • News
  • Parliamentary Questions
    • Housing, Planning & Local Government PQ's
    • School PQs
    • Foreign Affairs PQS
    • Oral Questions
  • Newsletters
  • Videos
  • PHOTOS
  • FIANNA FAIL
  • CONTACT
  • DATA Protection Statement