It is important to remember that not all properties in Rent Pressure Zones (RPZ) are restricted by the rule that rent cannot be increased by more than general inflation, as recorded by the Harmonised Index of the Consumer Price (HICP) and the rent previously set, cannot increase by more than 2% per year pro rata, where HICP inflation is higher. Exempt properties include properties that have not been rented for a period of two years prior to the immediate tenancy commencement date, and those that have undergone a 'substantial change in the nature of the accommodation'.
The following exemptions may be applied by landlords:
Exemption 1: The initial setting of the rent on a dwelling which had not been rented for a period of two years prior to the immediate tenancy commencement date. All rent reviews thereafter must adhere to the Rent Pressure Zone formula.
Exemption 2: A 'substantial change' in the nature of the accommodation has been defined in the legislation and will only be deemed to have taken place where the below criteria is met:
“the works carried out to the dwelling concerned -
(i) consist of a permanent extension to the dwelling that increases the floor area (within the meaning of Article 6 of the Building Regulations 1997 (S.I. No. 497 of 1997)) of the dwelling by an amount equal to not less than 25% of the floor area (within such meaning) of the dwelling as it stood immediately before the commencement of those works,
or
(ii) in the case of a dwelling to which the European Union (Energy Performance of Buildings) Regulations 2012 (S.I. No. 243 of 2012) apply, result in the BER (within the meaning of those Regulations) being improved by not less than 7 building energy ratings,
or any 3 or more of the following:
the internal layout of the dwelling being permanently altered;
the dwelling being adapted to provide for access and use by a person with a disability, within the meaning of the Disability Act 2005;
a permanent increase in the number of rooms in a dwelling;
in the case of a dwelling to which the European Union (Energy Performance of Buildings) Regulations 2012 (S.I. No. 243 of 2012) apply and that has a BER of D1 or lower, the BER (within the meaning of those Regulations) being improved by not less than 3 building energy ratings; or
in the case of a dwelling to which the European Union (Energy Performance of Buildings) Regulations 2012 (S.I. No. 243 of 2012) apply and that has a BER of C3 of higher, the BER (within the meaning of those Regulations) being improved by not less than 2 building energy ratings.
Approved Housing Bodies
For Approved Housing Bodies, the setting and reviewing of rent should be set out in the lease/contract provided to the tenant at the start of the tenancy. The use of comparable market rent in setting/reviewing the rent does not apply to Approved Housing Bodies. Click here for further information on Approved Housing Bodies Rent Reviews.