Cabinet Approves Residential Tenancies Bill; New Rules to Take Effect from March 1

Dublin: The Cabinet has approved the Residential Tenancies Bill, with the new legislation set to come into force on March 1. The Government said existing tenants will not be affected by the changes, and there will be no alteration to the current rights and obligations of landlords and tenants under existing rental agreements.

Under the new law, landlords will be permitted to reset rents to market rates for new tenancies commencing on or after March 1. However, once a new tenancy begins, rent increases will be capped for a six-year period. During this time, annual increases cannot exceed 2% or the rate of inflation, whichever is lower, with inflation measured by the Consumer Price Index. For contracts signed from March 1 onwards, rent increases will never exceed 2% per year.

The legislation also introduces a new six-year tenancy structure, providing tenants with protection from “no-fault” evictions during that period. Landlords may only terminate a tenancy within the six years in cases of breach of contractual obligations or where the property becomes unfit for habitation.

Distinction Between Small and Large Landlords

The Bill provides additional flexibility for small landlords, defined as those owning three or fewer rental properties. In certain circumstances—such as financial hardship requiring the sale of a property, or where the landlord or a close family member intends to occupy the dwelling—tenancies may be terminated. Termination may also be permitted where substantial renovation or a change in use is planned.

Large landlords, defined as those with four or more tenancies, will face stricter rules. They will not be permitted to evict tenants for reasons such as personal or family use, renovation, or change of use. However, they will still be allowed to sell properties with tenants in situ.

Government and Opposition Reaction

The Government has acknowledged that rents may rise initially as landlords adjust to market rates for new tenancies. However, it argues that the reforms will provide greater certainty for private landlords, encourage investment, and increase the supply of rental housing.

Housing Minister James Browne said the changes are aimed at boosting rental supply and retaining landlords in the market.

In contrast, Sinn Féin’s housing spokesperson, Eoin Ó Broin TD, described the reforms as “deeply concerning” and warned they could drive rents higher. The party has called for a three-year ban on rent increases instead.

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