Minister for Housing James Browne said measures approved by Cabinet this morning are designed to protect renters while also encouraging the development of more housing across Ireland, reports RTE.
He emphasized that the Government is reinforcing renters’ rights, though Opposition parties argued the changes fall short of offering adequate reassurance to concerned tenants.
At a press conference held at Government Buildings, Mr Browne acknowledged that it will take years before newly built apartments will fall under the rental rules linked to inflation, reports RTE.
He clarified that the rules will only be applicable to apartments that begin construction from today, aligning with the date the Cabinet decision was made.
Mr Browne confirmed that the measures will be implemented on 1 March 2026, after Rent Pressure Zones expire, and that legislation to support the changes will be brought forward later this year, reports RTE.
“We aim to simplify the operation of rent controls and to ensure any rent increases across the country will be restricted in line with inflation.
“To protect tenants at times of high inflation, we will retain the cap for permissible rent inflation at 2% with limited exceptions, reports RTE.
“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,” he said, reports RTE.
He explained that transitioning to a national rent control system reflects “the reality that tenants across the country face difficulty paying their rent”.
Mr Browne stated that the Government “wants to be clear” in acknowledging that rent levels are currently very high.
“We also want to be clear that we simply need new investment in rental accommodation, particularly apartments for rent, that is why we are allowing the rent for new apartments to be linked to the CPI even when inflation exceeds 2%,” he added, reports RTE.
He stressed that the rent control plan should not be considered a “silver bullet”, but a balanced effort to bring “certainty and clarity” to both renters and landlords.
Mr Browne admitted that a “very fine balance” was required to both attract investment and treat tenants fairly, reports RTE.
“The changes today will have a significant impact on our rental sector, making much-needed investment more attractive, whilst strengthening the protections and providing greater certainty for renters. We aim for tenancy protections that suit both tenants and landlords,” he said, reports RTE.
He described the new measures as just “one strand” in a wider range of initiatives, including planning extensions, exemptions, and several additional decisions expected soon.
Mr Browne said landlords will be permitted to reset rents only for new tenancies and in between different rental agreements, reports RTE.
However, he made clear that resetting rents will not be allowed following a no-fault eviction.
“Rent resetting will only be allowed where a tenant leaves a tenancy of their own volition or have reached their tenant obligations, or the dwelling is no longer suitable to the accommodation needs of the tenant household,” he said, reports RTE.
He added that rent resets would not be permitted for any tenancies established on or before 28 February 2026 due to the uncertainty it could cause for current renters.
Starting next March, larger landlords with four or more tenancies will no longer be able to issue no-fault evictions for leases created on or after that date. These tenancies will be of unlimited duration.
Mr Browne said this was aimed at making apartment development more appealing across Ireland.
No-fault evictions will be prohibited for renters living in properties owned by landlords with four or more homes. Renters with smaller landlords will receive six-year tenancy protections, reports RTE.
Nonetheless, landlords will retain the right to set rent at market levels between rental agreements.
Social Democrats TD Rory Hearne criticised the changes, saying the no-fault eviction ban would not cover at least half of existing tenancies.
Labour’s housing spokesperson Conor Sheehan likened the Government’s rental policy to a sinking ship, stating there were “more holes in the Government’s policy than there were on the Titanic,” reports RTE.
Taoiseach Micheál Martin defended the lifting of the previous no-fault eviction ban, saying the earlier decision was not a mistake.
Speaking before the Cabinet meeting, Mr Martin said the earlier ban had been “total”, something he described as “not sustainable either”.
He explained that the original ban was introduced as a “Covid measure,” and that critics of its removal “were not correct”, reports RTE.
He said there were “constitutional constraints” and the issue required a “balance”.
Mr Martin suggested that new protections would offer more than critics expect, stating the new rental framework would “surprise people”, reports RTE.
He pointed to the new rules around no-fault evictions and said “existing tenants would not see their rent go beyond the 2% Rent Pressure Zone cap.”
However, the Taoiseach stressed that the country must boost housing supply, reports RTE.
“We need more people building more apartments, and we need investment to come in to supplement what is unprecedented State investment in housing. The State is the main investor in housing at the moment, that’s not sustainable into the medium term, and so measures have to be taken to bring private sector investment in,” Mr Martin said, reports RTE.
Sinn Féin leader Mary Lou McDonald claimed the new rent framework opens the door for landlords to raise rents significantly.
She said students would be among the first affected and that rent increases should be stopped, not encouraged by the Government.
Ms McDonald argued that setting rents to market value would end Rent Pressure Zones and accused the Government of favouring investor interests, reports RTE.
“What you’re about is about screwing renters,” she said, reports RTE.
In response, Mr Martin insisted the reforms would enhance tenant protections.
He said the measures were developed based on the Housing Commission’s recommendations, which he noted had received Sinn Féin’s support.
Mr Martin described the policy changes as strong and effective in managing rent levels while also promoting investment, reports RTE.
He argued that building 50,000 homes a year would cost €20 billion, and it’s unrealistic to expect the State to fund it all alone.
Labour leader Ivana Bacik mocked the Taoiseach, calling him “the grand old Duke of Cork” for reversing course on Rent Pressure Zones, reports RTE.
She said the Government had previously signalled RPZs would be abolished, only to now apply them nationwide.
“You led your men up to the top of the hill before marching them all the way back down again,” reports RTE.
Ms Bacik accused the Government of causing investor confusion with “extremely vague and opaque policy” and highlighted a “worrying slowdown in construction”.
She pressed for details on what protections would be provided for renters facing eviction under the new rules, reports RTE.
Mr Martin rejected the U-turn claim and said the Government was establishing “a national framework of protection” ensuring “existing tenants will keep the RPZ at a 2%”, while “new tenancies – if we get new builds which is what we want to do – will be capped at CPI”.
He concluded that boosting construction requires policy clarity, saying, “and that is what this package is”, reports RTE.
“Renters are fearful – they are desperately fearful,” Ms Bacik replied.
Mr Martin responded that what is needed now is “practical reality,” and said the new measures reflect that reality, reports RTE.
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