Ireland looks to strengthen rental market with rules reform

The Irish government published its Residential Tenancies (Miscellaneous Provisions) Bill this week, which will introduce a national system of rent control for the country in a move to encourage and strengthen the rental market.

The new proposals would mean rent increases for new tenancies after 1 March 2026 could not rise higher than inflation as measured by the consumer price index. Rents cannot rise by more than 2% a year even if inflation is higher than that.

The bill will introduce definitions of smaller landlords – ones with three or fewer tenancies - and larger landlords. No-fault evictions will be banned for larger landlords, with limited provision for evictions for small landlords under the new banding systems, such as when they are in financial hardship.

But Louise McQuaid, a property and development expert with Pinsent Masons in Dublin, said the new proposals – which come after a review of rent pressure zones (RPZs) in Ireland - would also ensure the rental market was given a greater degree of stability which aims to encourage future investment.

“While the reforms significantly strengthen tenant protections, they also underscore the government’s intention to create a more stable and investable rental market,” she said. “This is an important signal for developers, funders and institutional landlords considering long term commitments in Ireland.”

“The move to a nationwide rent control system removes years of RPZ uncertainty and brings a level of consistency that many investors have long called for - although it will demand tighter financial modelling and earlier risk assessment,” she said.

The planned changes include introducing tenancies of minimum duration, which would be rolling tenancies of six years, and the creation of a Rent Price Register to provide greater transparency aboutrental rates in the country.

As part of the proposals landlords will be able to reset rents to market rates for new tenancies created on or after 1 March 2026 and between tenancies after that, as long as tenants leave of their own volition or in breach of their tenancy. But landlords must also prove that the reset rent is fair in comparison to similar properties in the area using the new rent price register.

Resetting rent to market rent will also be allowed at the end of each six year tenancy of minimum duration.  Separate provisions are also included for resetting rent in student properties.

Existing tenancies would not be affected by the new bill and would continue under the current rental laws. The Irish government is looking to get the bill through the Oireachtas quickly and in effect by 1 March 2026.