Dublin: Housing Minister James Brown is set to present draft legislation introducing changes to Ireland’s Rent Pressure Zone (RPZ) regulations at Tuesday’s Cabinet meeting. The proposed reforms have already drawn sharp criticism from tenant advocates, opposition parties, and consumer organisations.
Minister of State for Migration, Colum Brophy, confirmed that the revised housing policy will be unveiled to the public before the summer recess in July.
Key Provisions of the Draft Legislation
The new legislation proposes to scrap the current two percent annual cap on rent increases for newly built rental units, allowing rents to rise in line with inflation instead. The government argues that this adjustment is necessary to ensure investor confidence and to prevent financial losses in periods when inflation exceeds the 2% threshold.
However, critics argue that allowing inflation-linked rent hikes during a cost-of-living crisis is deeply problematic. Legal experts have described the move as ironic and potentially harmful, while consumer protection groups have labelled the proposal “reckless and out of touch”.
The legislation will not affect existing tenants, who will continue to pay their current rent. However, landlords will be permitted to reset the rent to current market rates when a new tenant moves in.
Under the proposed rules:
- Rent increases will be capped at twice the inflation rate (2x) annually, following a market-rate reset every six years.
- New tenants will receive a six-year tenancy protection period.
- The reforms include provisions for “no-fault” evictions, marking the first time such evictions are legally codified in Ireland.
Government Justification
Taoiseach Micheál Martin defended the bill, citing recommendations from the Housing Commission for a more balanced approach to legal and housing market reforms. He stated that the proposed measures aim to provide certainty and stability for both tenants and investors, encouraging long-term investment in the rental sector.
“We are introducing safeguards for tenants while ensuring the housing market remains viable for those investing in it,” Martin said.
Strong Opposition Reaction
Opposition parties have denounced the bill as favouring corporate landlords and private developers at the expense of ordinary renters.
People Before Profit TD Paul Murphy condemned the changes, noting that rents in Ireland have doubled over the past decade. He argued that the solution lies in public investment and the creation of a state-owned construction company to curb profiteering in the sector.
“Private developers are making profits of over €70,000 per unit. This government’s plan will only make things worse for tenants,” Murphy said.
Sinn Féin TD Louise O’Reilly echoed the criticism, accusing the government of failing to provide affordable housing and withdrawing vital tenant protections, including the eviction ban and funding for the Tenant in Situ programme.
“We are witnessing the direct consequences of policies designed to benefit developers and not people. More families will face homelessness as a result,” O’Reilly warned.
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