The Government has signed off on measures which will cap rent increases at 2 per cent, or in line with inflation if the rate is below 2 per cent.
Minister for Housing Darragh O'Brien confirmed the decision, which will apply in rent pressure zones (RPZ), on Thursday, adding that key provisions are now being drafted "as a matter of priority".
The changes will form part of the Residential Tenancies (No. 3) Bill 2021, which is due to be published later this month. The Minister confirmed the rent cap will apply immediately once the Bill has been enacted.
Commenting on the new cap, Mr O'Brien said: "This measure respects the constitutionally protected property rights of landlords and aims to safeguard continued investment in the sector by existing and new landlords to deliver the requisite supply of high-quality rental accommodation."
'Doomed to fail'
Although the Minister said the Government is "fully committed to improving the situation for renters", Sinn Féin said rent pressure zones negate any positive impact of the 2 per cent cap.
The party's housing spokesperson, Eoin Ó Broin TD instead called for the zones to be scrapped under the new Bill, in addition to implementing a statewide ban on rent increases.
Mr Ó Broin said the new measures are "doomed to fail", adding: "This is because legislation has too many loopholes and the RTB (Residential Tenancies Board) lacks sufficient resources to chase and sanction landlords who breach the rent caps."
