The Irish Government has today announced its intention to introduce significant changes in the context of the residential rental market.. These are a combination of proposed reforms of rent controls, which the Government hopes to stimulate investment in PRS, and significantly enhanced tenancy protections.
Key developments
Under the proposed changes, different categories of rental properties will be subject to different treatment, with key distinctions emerging between large versus small landlords and between existing rental stock versus newly built properties. Much detail remains unknown but, based on the Government announcement issued just after 1pm today, we have set out below our high-level summary of what is proposed for large landlords. Owners with three or less units will be subject to different, more relaxed measures.
Next steps
As with any new policy proposals, the devil will ultimately be in the detail and we await publication of the draft legislation required to give effect to these reforms, which the Government indicates will be published in the coming weeks. We will continue to monitor these and related developments.
In the meantime, should you have any queries please contact Aoife Smyth, Knowledge Consultant, or your usual ALG Real Estate contact.
| Setting of rent on grant of new tenancy | Setting of rent on review | Tenancy termination (applicable to new tenancies entered into from 1 March 2026) | Key items requiring further clarification in legislation | |
| Existing property in an RPZ and subject to an existing tenancy | New provision. Landlords will be permitted to reset rents to prevailing market rates between tenancies. However, this will only be possible where a tenant has either left voluntarily or is in breach. | No change. Current RPZ rules continue to apply, with rent increases for reviews under existing tenancies capped at 2% per annum or in line with inflation, whichever is the lower. | New provision. Enhanced tenant protections meaning landlords will not be able to end a tenancy where the tenant has complied with their obligations except in “very limited circumstances”. These protections seem to be underpinned by a new statutory concept of six year rolling tenancies. | Unclear whether new RPZ rules take effect on 1 March 2026 or before. No clarity provided on what the “very limited circumstances” for termination will be. The full implication of the concept of statutory six year rolling tenancies is as yet unclear in the context of fixed term arrangements. |
| New build property in an RPZ (being new development subject to a commencement notice to planning authorities on or after 10 June 2025) | New provision. Landlords will be permitted to reset rents to prevailing market rates between tenancies. However, this will only be possible where a tenant has either left voluntarily or is in breach. | New provision. Newly constructed rental properties are to be exempt from the existing RPZ regime which caps increases in rent at 2%. Instead, rent increases will be capped at the rate of inflation (CPI). | New provision. Enhanced tenant protections meaning landlords will not be able to end a tenancy where the tenant has complied with their obligations except in “very limited circumstances”. These protections seem to be underpinned by a new statutory concept of six year rolling tenancies. | It appears from today’s announcement that the definition of “new build” is limited to apartments. See issues raised above also. |
| Existing property in the balance of the country not currently designated as RPZs | New provision. Landlords will be permitted to reset rents to prevailing market rates between tenancies. However, this will only be possible where a tenant has either left voluntarily or is in breach. | New provision. Current RPZ rules are to be extended to cover these areas, such that rent increases for existing stock countrywide are to be capped at 2% per annum or in line with inflation, whichever is the lower. | New provision. Enhanced tenant protections meaning landlords will not be able to end a tenancy where the tenant has complied with their obligations except in “very limited circumstances”. These protections seem to be underpinned by a new statutory concept of six year rolling tenancies. | Currently rent review frequency in these areas is limited to every 2 years – query whether this will be brought in line with current RPZs (i.e. permitted annually). See issues raised above also. |