Thursday 09 December 2021
Legislation capping any rent increases at 2% passed by both Houses of the Oireachtas
- Ban on rent increases in Rent Pressure Zones (RPZs) from exceeding general inflation will now be subject to a new cap of 2% per annum
- Legislation also provides for tenancies of unlimited duration to enhance security of tenure for tenants
The Minister for Housing, Local Government and Heritage, Darragh O’Brien TD, has welcomed the passing of the Residential Tenancies (Amendment) (No. 2) Bill 2021 by both Houses of the Oireachtas. The legislation caps rent increases at inflation or 2% per annum whichever is lower.
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 now goes to the President for signing. The rent increase cap will apply immediately upon enactment.
Welcoming the passing of the legislation, Minister O’Brien said: “This Bill’s swift passage through the Oireachtas demonstrates the Government’s commitment to improving the situation for renters in Ireland. When introducing the legislation to link any rent increases to inflation in July, I was very clear on the need to carefully monitor inflation. At that time, 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 the Harmonised Index of Consumer Prices, 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.
“This legislation 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.
“We are working very hard to make housing more secure and affordable for renters. Affordability is one of the key challenges in the rental market and tackling this is one of the central tenets of Housing for All. In addition to this important legislation, 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.
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.
Once the President signs the Bill into law, the RTB will further communicate this information to their customers and stakeholders.