New rent rules are set to come into effect on 1 March following a defense from the Government, which stated the changes aim to balance tenant rights with the need to encourage investment in the rental market. The full text of the proposed legislation, the Residential Tenancies Bill, is currently before Cabinet for review this week.
Overhaul of Rent Rules
The announcement of a major overhaul to rent rules was first made last June. From that point forward, the entire country was designated a rent pressure zone, limiting annual rent increases to a maximum of 2% or the rate of inflation, whichever is lower.
However, the implementation of more significant changes required new legislation, with a planned start date of 1 March. These changes propose allowing small landlords to adjust rents to current market rates when a tenancy ends. Simultaneously, tenants could benefit from increased security through six-year lease agreements.
Opposition Concerns
The proposed changes have drawn unified condemnation from the Opposition, who argue the new rules are likely to lead to increased rent prices. Sinn Féin’s Martin Kenny, speaking on RTÉ’s The Week in Politics, described the changes as “a recipe for corporate landlords to come into the market and make more money off Irish renters,” suggesting the legislation could incentivize evictions to facilitate rent increases.
Social Democrats TD Jennifer Whitmore, also appearing on the same program, stated that the changes would not result in more affordable rents. She argued that the Government’s claim of removing barriers to supply is, in reality, “removing barriers to affordable rents.”
The Government maintains that existing rent controls are discouraging landlords from investing in, or remaining in, the rental market. They believe the proposed changes will ultimately increase the supply of rental properties, which they claim will, in turn, limit the extent of rent increases.
Minister for State Jerry Buttimer stated the changes are intended to “strengthen the balance between the rights of the tenant and giving them certainty in terms of tenure and also encouraging investment.”
Opposition TDs have also raised concerns about the limited time available to debate the legislation before its scheduled implementation on 1 March. However, Mr. Buttimer countered this claim, stating that pre-legislative scrutiny of the bill’s outline had already been completed.
Frequently Asked Questions
What is the implementation date for the new rent rules?
The new rent rules are scheduled to come into force on 1 March.
What changes are proposed for landlords?
Under the proposals, small landlords would be allowed to reset rents to market rates between tenancies.
What changes are proposed for tenants?
Tenancies could get greater security with six-year leases.
How might these changes affect the availability of rental properties in the coming months?
