Ireland’s New Rent Control Reforms: What Renters and Landlords Need to Know
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Following on from my previous blog post dated 9 June, the government has unveiled a sweeping reform package aimed at balancing tenant protections with the need to boost housing supply. The changes, announced on June 10, 2025, mark a significant evolution of the Rent Pressure Zone (RPZ) system, which has been in place since 2016.
Key Highlights of the New Rent Control Measures
1. Nationwide Expansion of RPZs
- RPZs, which cap rent increases at the lower of 2% or inflation, will now apply across the entire country. This move brings nearly 20% of renters—previously outside RPZs—under rent control protection
2. Differentiation Between Landlord Types
- A new classification system defines:
- Large landlords: Those owning four or more properties.
- Small landlords: Those with three or fewer.
- Large landlords will face stricter rules, including a ban on “no-fault” evictions
3. Rent Reset Rules
- Landlords can only reset rent to market levels if a tenant leaves voluntarily or breaches their lease.
- If a tenant is evicted without fault, the landlord cannot increase the rent for the next tenant
4. New Builds Exempt from 2% Cap
- To encourage development, new apartment builds (commenced after June 10, 2025) will not be subject to the 2% cap. Instead, rent increases will be tied to inflation
5. Security of Tenure
- Tenants will now have a minimum six-year security of tenure, offering greater stability in the rental market
6. Implementation Timeline
- While the policy framework is now public, legislation is expected in the coming months, with full implementation set for March 1, 2026
How might these new measures affect the Irish rental sector?
Institutional investors, such as pension funds and REITs, may view the expanded rent caps and stricter eviction rules as a deterrent. The inability to reset rents freely between tenancies—especially for large landlords—could reduce the long-term profitability of rental portfolios. This might lead to a cooling of interest in the Irish build-to-rent sector.
On the flip side, the exemption of new builds from the 2% rent cap is a clear olive branch to developers. By allowing inflation-linked rent increases for new projects, the government is signalling that it still wants to attract capital into housing construction. This could help ease the chronic supply shortage, especially if paired with planning and zoning reforms.
Written by: Conor Dunne
