The End of Rent Pressure Zones: What It Means for Ireland’s Housing Market

What Are RPZs?

RPZs are designated areas—mostly in Dublin and other urban centres—where rent increases were limited to 2% per year, or in some cases, tied to the rate of inflation. The goal was to protect tenants from sudden rent hikes while allowing landlords modest returns.

Why Are They Ending?

The expiration is part of a broader policy review. Critics argue that while RPZs offered short-term relief, they may have discouraged investment in rental housing, contributing to the ongoing supply shortage. Others believe the caps were essential in maintaining affordability in overheated markets.

What Happens Next?

Here’s what we might expect post-RPZ:

Rent Increases: Landlords may seek to adjust rents to market levels, especially in areas where caps have kept rates artificially low.

Investor Interest: The end of RPZs could reinvigorate investor confidence, particularly in the build-to-rent sector.

Policy Replacements: The government may introduce new affordability measures or targeted supports to replace RPZs and protect vulnerable renters.

Market Volatility: In the short term, we could see price fluctuations as the market recalibrates.

What Should Renters and Landlords Do?

Renters should stay informed about their rights and any transitional protections that may be introduced.

Landlords should prepare for regulatory updates and consider the long-term sustainability of their rental strategies.

Taoiseach Micheál Martin has indicated that a final decision is imminent, likely to be announced alongside the government’s new housing strategy in July 2025

Written by: Conor Dunne  Associate (Real Estate)