Rent to be capped at 2% in rent pressure zones

Rent Pressure Zones are located in parts of the country where rents are highest and rising, and where households have the greatest difficulty finding affordable accommodation. A new Bill published recently aims to cap rent increases at 2% per year in Rent Pressure Zones (RPZs). The Bill will also provide for tenancies of unlimited duration – a key reform under the government’s recently published plan to create a sustainable housing system in Ireland. The new cap will only operate when general inflation is higher than 2%. These changes will be enacted under the Residential Tenancies Act once passed by the Oireachtas. 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. 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. Further information on these zones can be found on www.rtb.ie/rent­pressure­zones