Ireland: Minister for Housing,James Browne has introduced changes to Ireland’s Rent Pressure Zones, replacing the current two per cent annual rent increase cap for new rental properties with a cap tied to inflation.
The Irish government claims the change looks to give investors certainty with their properties, close the yield gap and ensure viability for the renting industry.
Existing renters will not see a change to their leases, as long as they remain in their current residency. However, renters who move properties can expect a landlord to reset the rent for a new tenant at the market rate.
Legislation to increase protections for new renters is also being created and aims to provide security of tenure for a minimum of six years. If this legislation passes, landlords will be allowed to reset the rent at each six-year interval to the market rent.
Minister of State for Migration, Colm Brophy, claimed that “ultimate protection” for renters is for the government to deal with the rising housing demand and get more homes built.
Brophy said: “For every home that’s buil[t] by private corporations in this country, they’re taking about €70,000 out in profit. The State needs to do this directly.”
In opposition, Sinn Féin’s Teachta Dála, Louise O’Reilly, accused the Irish government of not being genuine about protecting renters or making homes affordable.
O’Reilly stated: “Evictions are going up. The only protection that renters had was an eviction ban, the Government lifted that. They promised protections for renters that didn’t happen. The only other scheme that in any way prevents homelessness is the tenant in situ scheme and they have effectively closed that by cutting the funding to it.”
Highlights:
- Minister for Housing, James Browne, will propose replacing the current 2 per cent annual rent increase cap for new rental properties with a cap tied to inflation.
- Existing renters won’t see changes to their current leases, but new tenancies will allow landlords to reset rents to market rates.
- New legislation will provide a minimum six-year security of tenure, with rent resets to market rate allowed every six years.
- The government aims to provide investor certainty and ensure viability for the rental sector, though many individuals strongly criticize these measures.
