Changes to rent controls announced - thread for clarifying

This thread is for understanding what is proposed. It is not for discussing the merits which can be done in this thread.

Changes to rent controls announced - discussion

This thread is for discussing the pros and cons of the new measures.

www.askaboutmoney.com

The key changes approved by the Government today include:​

• Legislation to be introduced aimed at increasing the supply of rental accommodation and providing significant improvements to security of tenure for all new tenancies
• Amendments to rent regulation will be introduced to promote investment and protect all tenants nationally.
• A National system of rent control with rent increases for all tenancies to be capped by inflation (Consumer Price Index). In times of high inflation, rent increases for most tenancies will be capped at a maximum of 2%.
• Significant improvement to tenant protections for all new tenancies (after March 1st 2026) further enhancing security of tenure for all new tenancies created after the introduction of new legislation.
• Tenancies of unlimited duration to be enhanced by introduction of rolling-six year tenancies of minimum duration for smaller landlords (three or fewer tenancies) with restricted grounds for ending a tenancy.
• Ending of ‘no fault evictions’ for larger landlords (four or more tenancies). Landlords with four or more tenancies will not be able to end a tenancy where the tenant has complied with their obligations except in very limited circumstances.
• All landlords will continue to have the right to terminate a tenancy where there is a breach of tenant obligations or where the dwelling is no longer suited to the needs of the tenant household.
• Smaller landlords (three or fewer tenancies) will only be able to terminate a tenancy during the six-year tenancy in limited circumstances:
  • Where they face hardship, which will be defined in legislation (e.g. separation/homelessness/emigrant returning from abroad/bankruptcy);
  • They require the dwelling for an immediate family member (parent/child/spouse).
• At the end of each six-year tenancy, a smaller landlord will have the right to terminate a tenancy due to:
  • Intention to sell;
  • Renovation of the property;
  • Require property for family member
  • Change of use.
• All Landlords who have entered into a new tenancy arrangement on or after March 1st 2026 will have the right to reset rent where the rent is below market at the end of each six-year tenancy, unless a ‘no fault eviction’ occurs. Under the Residential Tenancies Acts it will remain prohibited to set a rent above market rent.
• All landlords will be able to sell a property with tenant in-situ at any time.
• To incentivise new development of apartments rent increases in new developments subject to a commencement notice to planning authorities on or after today, will be capped by the Consumer Price Index.

To allow for sufficient time to develop the necessary legislation and to communicate the changes to landlords and tenants, it is proposed to introduce the new arrangements for tenancy protections from 1st March 2026.
Minister Browne intends to seek further Government approval, before the summer recess, for Heads of a Bill as a basis for the priority drafting of legislative amendments to the Residential Tenancies Act to provide for the changes announced today.

Can someone clarify what "no-fault" evictions are allowed at present?

I thought that people could be evicted only if the landlord were selling the property?

I understand that tenancies started after a certain date could be ended for no-fault. But is that gone now?

Will a landlord be able to terminate a tenancy if they want the property back for their own use or the use of a relative?

He said the measures will come into effect on 1 March 2026 following the expiration of rent pressure zones and that legislation will be introduced later this year to give effect to the measures.

"We will allow rents for new tenancies created on or after 1 March 2026 to be set at market value but in return for far greater security of tenancies for tenants to six-year tenancies of minimum duration."

James Browne said rent resetting "will only be allowed where a tenant leaves a tenancy of the own volition".

"However resetting of rent will not be allowed following a no-fault eviction," he added.

Does the 6 years begin in March 2026 or is it 6 years from the start of the tenancy? There are many Landlords who have received below market level rent for many years. Assuming the tenant is long term, will the LL have to wait another 6.5 years to get back to market value is my question.

I intended to post this on the other thread before it was closed, hopefully it is okay to post here.

We own 4 rental properties, so I guess we will be classed as a large landlord, and so it seems as though we will be restricted with what we can do with the properties unless the tenants leave voluntarily. I don't see any of them leaving voluntarily as the rents are well below market rents and 2 of the tenants have been in situ since 2021, once since 2022 and once since 2023. I imagine they will all stay long term unless there is a dramatic increase in supply and prices go down.

The first property we rented out was in 2015, just before the RPZ came in. The rent in 2015 was 1350 and now is just below 1600, 3 bed apartment in desirable area.

A property management company looks after the properties for us, so we have very little hassle. So we have been inclined to accept the comparatively low rent as it still offers a better return than other investments. We are starting to reconsider now, if it means our own rights are worsened, ie will be even be allowed to sell a property in future if we are classed as a large landlord?

I struggle to see how an open-ended prohibition on “large” landlords seeking no-fault termination of tenancies could be constitutional. It looks like an unjustified attack on property rights to me.

Has the reported ability to reset rents to market rates after 6 years been dropped? I can’t see anything about it in the Minister’s comments.

Does no-fault evictions being banned for large landlords mean that only landlords with four or less rentals will be able to terminate the tenancy for sale, own use, or substantial refurbishment?

That's what I'm worried about. I think we might need to reduce our 4 properties down to 3, so that we aren't classed as a large landlord, otherwise could lose our right to sell or use for one of our kids in future!

As the current tenancy on one of our properties began in May 2021, I'm wondering will the part 4 tenancy still apply at 6 years from that date.

So landlords who want to get out of the business will have to sell to other landlords?

Ones who are willing to keep the current tenants.

Is that practical?

These changes don't come into effect until next year.

So if you have more than 4 properties, you should try to sell the "surplus" now so that you will be classified as a small landlord.

Anyone having a a low rent property should probably consider waiting until the 01.03.2026 to rent again if the renters were leaving.

Unintended consequences, if I was a landlord in an environment of high rental demand, I would be renting to those highly mobile young professionals and not to young families/HAP tenants who would likely to avail of a long lease?

If you’ve two properties subdivided, into 4/5/6 units does that count for four - making you a large landlord?

..So if a 6 year "no fault eviction" / "security of tenure" applies to small landlords - and presuming there's no way of "contracting out" of this, that would seem to make it extremely unattractive to a small landlord who, say was going overseas to work for 2 or 3 years as they'd potentially not be able to ragain possession of their property upon their return until the 6 years is up? - i.e. Even if they had agreed a shorter period with the renter at the outset - the renter could simply change their mind and hang on through the balance of the 6 years?

Surely there'll be a better way to do this if two parties had agreed a set term at the outset - or does this new setup override any such agreement?

Pauley said:

..So if a 6 year "no fault eviction" / "security of tenure" applies to small landlords - and presuming there's no way of "contracting out" of this, that would seem to make it extremely unattractive to a small landlord who, say was going overseas to work for 2 or 3 years as they'd potentially not be able to ragain possession of their property upon their return until the 6 years is up? - i.e. Even if they had agreed a shorter period with the renter at the outset - the renter could simply change their mind and hang on through the balance of the 6 years?

Surely there'll be a better way to do this if two parties had agreed a set term at the outset - or does this new setup override any such agreement?

Click to expand...

It should be OK. You can still evict the tenant when you come back after 3 years away but you cannot get back to market rent as you would be availing of the no fault eviction process which I believe is moving a family member back in, selling the property etc.

Bronte said:

If you’ve two properties subdivided, into 4/5/6 units does that count for four - making you a large landlord?

Click to expand...

I wouldn't have thought so. You have two pies the slices are irrelevant. Like everything though, the devil is in the detail.

I am amazed that this is so badly thought through; there are so many unintended consequences:

1. If you have 4 or more properties, it makes sense to sell the surplus and reduce to 3 as otherwise you're 100% locked in until the tenants leave themselves. You also risk losing an argument over a 'fault' eviction in the RTB (which is very likely they are so anti-landlord) which means you are now possibly stuck with a difficult tenant forever. Tenants get evicted and less rental properties are available.

2. It discourages having smaller landlords at scale who are often more professional and financially sound than the 1 property mom and pops. Again, fewer rental properties.

3. Whether you are a large or a small landlord, it makes sense to cherry pick your tenants and ensure they will be short term as you have flexibility when they leave. Those, often on lower incomes, who need long term rentals are at a disadvantage.

4. From a rent standpoint, it makes sense to pick short term tenants as you can raise the rent each time they leave. Rents keep increasing.

5. The plan seems to be that international investment will flow in. Perhaps it will, but that will be in Dublin only and at top rents.

6. Very complex and difficult to understand rules so all sorts traps.

So, apparently there will be a six-year reset to market rent but it will not apply to existing tenancies (per the Taoiseach’s response to opposition questions).

What a joke.

The 6-years prohibition on no-fault termination of tenancies for “small” landlords will further restrict the supply of rental properties.

If you were posted abroad for a few years, you would be mad to rent out your house - you may not regain access when you return.

And what happens if a landlord dies? Can the tenant still stay put for six-years?

IMO anybody still in the residential rental game should get out while you still can.

God help renters.

Does the six year security of tenure go in tandem with the resetting to market rent ?

If a tenant vacates voluntarily after 1/3/26 and a new tenancy is at market rent, does the rent stay the same for the next six years or will the 2% increase still apply

Does a no-fault eviction apply to every tenancy for that six year period ie, not just the large landlord category.