Proposed Reforms to Residential Tenancies

On 10th June 2025, the Government announced significant reforms to the residential rent control system, aiming to balance increased investment in the rental supply with enhanced tenant protections.  The reforms are scheduled to take effect by 1st March 2026.  The official Government announcement can be accessed at the following link: 

https://www.gov.ie/en/department-of-housing-local-government-and-heritage/press-releases/government-to-introduce-major-reforms-to-the-rental-sector/

The exact detail of the proposed reforms will not be known until the draft legislation is published.

Key Proposed Changes

  1. Rent Pressure Zone

The Rent Pressure Zone (“RPZ”) system where rent increases are capped in line with the rate of inflation or 2%, whichever is the lower, was extended to cover all tenancies nationwide up to 28th February 2026 by virtue of the enactment of the Residential Tenancies (Amendment) Act 2025.  The expectation is the RPZ will continue to apply nationwide under the new legislation. 

  1. Newly Built Apartments

Rents for new build apartments will not be subject to the current 2% cap but will be linked to inflation and capped by the Consumer Price Index (“CPI”).  This applies to new apartment developments where a commencement notice is lodged with the planning authority on or after 10th June 2025. 

  1. New distinction between “Large” and “Small” Landlords.

The distinction will now define large landlords as those who have four or more tenancies and small landlords will be defined as those with three or fewer tenancies. 

  1. Rolling six-year tenancies

Rolling six-year tenancies of minimum duration will be introduced for smaller landlords.

5. Landlord Rent Resets

All landlords of tenancies created on or after 1st March 2026 will have the right to reset rent where the rent is below the market rent at the end of each six year tenancy, unless a “no fault eviction” occurs.  Under the Residential Tenancies’ Act, it will remain prohibited to set a rent above market rent.

6 Enhanced Eviction Protections

“No fault” Evictions 

Large landlords will not be able to end a tenancy where the tenant has complied with their obligations except in very limited circumstances.  It is not yet clear what those limited circumstances are.

Smaller landlords will only be able to terminate a tenancy during the six year tenancy in limited circumstances such as:

  1. Where they face hardship, which will be defined in the legislation (for example separation/homelessness/emigrant returning from abroad/bankruptcy) and
  2. 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:

  1. Intention to sell;
  2. Renovation of the property;
  3. Require property for a family member; and
  4. Change of use.

All landlords will continue to have right to terminate a tenancy where there is a breach of the tenant’s obligations or where the dwelling is no longer suited to the needs of the tenant household.

All landlords will continue to be able to sell a property with tenant in situ at any time.  Under the expected reforms, it may be no longer be possible to sell properties without sitting tenants.  This may impact a landlord’s ability to liquidate assets when needed.

Further details on these reforms will be available once the draft legislation is published.  

If you have any questions on the above changes, please contact Noelle McDonald, Partner at noelle@crowleymillar.com or your normal point of contact in our Property Department.

Crowley Millar Disclaimer:  This is a general information note and is intended for brief guidance and information only.  It does not constitute legal advice and should not be regarded as a substitute for legal or other professional advices.  Such advice should always be taken before acting on any of the matters referenced to in this information note.