The Department of Housing, Local Government and Heritage yesterday published further clarifying information regarding the residential tenancy reforms which it announced in June. This is in anticipation of publication of the legislation needed to give effect to these changes, which the Government says is to be published “later this year”. This is a relatively unusual step and reflects both the significance of these reforms from a policy perspective and market demand for further information on how the reforms are to operate.
Setting of rent on review
The new materials confirm the previously announced reforms to rent controls for new tenancies entered into from 1 March 2026 (New Tenancies). This will be a nationwide cap of 2% or the rate of inflation, whichever is the lower. It is also confirmed that the reference index for the purposes of calculating the rate of inflation will be CPI and not HICP. Both indexes sit at 2.7% as at end October 2025. This will also be the mechanism for reviewing rent for existing tenancies (i.e. those in place on 28 February 2026).
These restrictions will not apply to newly built apartments and student-specific accommodation (SSA). In each case “newly built” means units which are the subject of a commencement notice dated on or after 10 June 2025. Rent increases for these newly built properties will be in line with CPI and not subject to the 2% cap.
Resetting of rent to market
The ability to reset the rent to market in certain circumstances is also confirmed, when:
- A tenant leaves voluntarily;
- The tenancy is terminated for tenant breach;
- The property no longer meets the tenant’s needs (e.g. size, accessibility); or
- At the end of each 6-year TMD (see below for further information).
Student accommodation
The documentation published yesterday indicates that, as student arrangements generally change every year, the new rent controls will be tailored specifically for SSA. The proposal is that SSA owners will not be permitted to reset rents / licence fee to market on the commencement of each student licence, but rather that readjustment to market value will be permitted every 3 years during which the property remains in operation as SSA.
The guidance does not clarify the specific rent increase restrictions which will apply to SSA during the 3 year periods, nor the rhythm of the 3 year periods, and we await the draft Bill to provide further clarity on this.
Tenancies of Minimum Duration
The Government has confirmed its intention to introduce tenancies of minimum duration (TMD) for New Tenancies. The new rules will apply to PRS units, as well as HAP (Housing Assistance Payment), RAS (Rental Accommodation Scheme) and cost rental units. It seems that TMDs will replace the existing Part 4 regime for these New Tenancies.
TMDs will be rolling 6-year tenancies, arising once a tenancy has been in place for 6 months, during which landlords will not be able to serve a notice of termination other than in very limited circumstances. For larger landlords (4 or more tenancies), the sole grounds for termination will be (i) breach of tenant obligations and (ii) if the property is no long suitable for the tenant’s needs. The documentation confirms that larger landlords of New Tenancies will not be permitted to terminate on the other existing Part 4 grounds, to include the substantial renovation of the property.
Note that the materials make it clear that the 6-year duration of TMDs binds the landlord only – a tenant is free to terminate at any stage, subject to providing the requisite notice. It seems that the notice periods for tenants will be broadly similar to what they are under the existing Part 4 regime, although this is to be further clarified on publication of the legislation.
Rent register
Rental amounts for each tenancy will be included on the RTB’s publicly available rent register, without disclosure of the address or the identity of the landlord or tenant. It is at this point unclear, in the absence of an address, how much detail will be provided regarding the location of the tenancy in order for the register to be of use for the purpose of establishing market rent by way of comparables.
In summary
The publication of this information is a helpful interim step whilst we await the amending legislation which will give effect to these policy changes. However, we would caution against reliance on its content – only the legislation will provide the necessary certainty on how these various changes are to operate in practice.
As ever, we will continue to monitor these and related developments. In the meantime, should you have any queries please contact Aoife Smyth, Practice Development Consultant, or your usual ALG Real Estate contact.