On 10 June 2025, the Minister for Housing James Browne announced new policy measures to reform rent regulation in Ireland with the aim of boosting investment in the supply of homes for rent and provide certainty to the residential market while further extending protections for renters. The proposed reforms were informed by a report from the Housing Agency and its preferred option of modifying the existing rent pressure zone system.
Extension of RPZs nationwide
It was announced that rent pressure zones (RPZs) would be extended nationwide and the first step in the proposed reforms was to enact the legislation to provide for such extension. The Residential Tenancies (Amendment) Act 2025 was fast-tracked and came into force on 20 June 2025. This provided for a two-month extension to 28 February 2026 for existing RPZs (previously due to expire on 31 December 2025) and to designate any non-RPZs to be RPZs from 21 June 2025 to 28 February 2026.
This means a national system of rent control applies with rent increases for all tenancies capped by inflation (Harmonised Index of Consumer Prices) or 2% per annum, whichever is the lower. In times of high inflation, rent increases for most tenancies are to be capped at 2%. Rent can only be reviewed every 12 months in an RPZ. In newly designated RPZ areas, existing tenancies are subject to a two-year interval before the first rent review may occur. This applies from the tenancy commencement date or the date of the most recent rent review, whichever is later
The extension of RPZs also has the effect of extending the application of planning legislation regulating short-term lettings (lettings for less than 14 days) to the entire country. This will have an impact on a significant number of holiday homes in areas previously not designated as RPZs. Under planning legislation, the use of a dwelling in an RPZ for a short-term letting is a material change in use, so, unless exempted, planning permission would be required to permit the change of use. There are exemptions for short term lettings where a landlord rents their principal private residence for less than 90 days in the year or rents up to four bedrooms (with a maximum of four people per room) in their principal private residence.
Other Proposed Reforms
As above the designation of RPZs is to apply until 28 February 2026. It is expected that this will be extended for a further period in conjunction with implementation of the other reforms announced on 10 June last and expected to take effect on 1 March 2026. These reforms include:
- Larger and smaller landlords: A distinction is introduced between larger landlords (those with four or more tenancies) and smaller landlords (those with three or fewer tenancies). Different termination rules will apply for larger and smaller landlords.
- Rolling 6-year tenancies: Tenancies of unlimited duration to be enhanced by introduction of rolling six-year tenancies of minimum duration for smaller landlords with restricted grounds for ending a tenancy during the 6-year period. At the end of a 6-year tenancy, a smaller landlord will have the right to terminate due to Intention to sell; renovation of the property; property being required for a family member or change of use.
- Ending of "no fault evictions": Larger landlords will not be able to end tenancies where the tenant has complied with their obligations save in very limited circumstances (details awaited).
- Right to reset rent: All landlords will have the right to reset rent where the rent is below market at the end of each six-year tenancy, unless a ‘no fault eviction’ occurs. The proposals do not prescribe whether rents can be reset if termination has arisen due to tenant breach or if a tenant has voluntarily left a premises during the 6-year cycle, but it is expected the proposed legislation will make this clear.
It is noted that all landlords will continue to have the right to terminate a tenancy where there is a breach of tenant obligations or where the dwelling is no longer suited to the needs of the tenant household; and that landlords will continue to have the right to sell a property with a tenant in situ.
Incentive for new housing developments
To incentivise new development of apartments, it is proposed rent increases in new developments subject to a commencement notice to planning authorities on or after 10 June 2025, will be capped at the Harmonised Index of Consumer Prices.
Summary
Key features evident from the proposals is the intent to treat small landlords in a more benign fashion than larger landlords, and further to differentiate new builds and existing rental stock. The Government hopes that the proposals will accelerate investment in the private rented sector while extending tenant protections, it remains to be seen whether the measures will have the intended effect. While the announcements have not been universally welcomed by all stakeholders and their full impact is yet to be determined, the market will at least have a level of certainty so as to permit consideration of future investment.