Private rental sector reforms
In October 2025, Minister for Housing James Browne TD sought approval for legislation on private rental sector reforms which are planned to come into effect in March 2026.
It seeks to extend the designation of the entire state as a rent pressure zone (RPZ). The RPZ system caps annual rent increases at 2 per cent or the consumer price index rate of inflation. Under the Residential Tenancies (Amendment) Act 2025, the RPZ system was extended to the entire State on 20 June 2025 and will apply until 28 February 2026.
Previously, approximately 83 per cent of tenancies were located in RPZs and the new measures saw an additional 40,000 tenancies under rent control measures. This change was made earlier than planned following concerns that a delay could allow rent increases before the new framework came into force.
The RPZ system was introduced in 2016 as an emergency measure to address “consistent rental inflation”. It was initially designed to last from December 2016 to December 2019 but was subsequently extended in 2019, 2021, and 2024. In 2021, the existing 2 per cent cap was set, a reduction from the initial 4 per cent.
In its June 2025 review of RPZs, The Housing Agency indicates that the 2021 “tightening of controls” negatively impacted supply, leading to an increase in the supply of homes for sale and a 17 per cent decline in rental registrations.
The review states: “There is some evidence that the current RPZ system is acting as a disincentive to new investment and that the reduction of the rent cap from 4 per cent to 2 per cent saw some smaller landlords leave the market.”
Stakeholders involved in the administration and designation of RPZs from the Department of Housing, The Housing Agency, all 31 local authorities, and the RTB, outlined their support for extending the RPZ system “either as is or with modifications”.
Upon publication of the bank’s quarterly bulletin in mid-June 2025, Robert Kelly, director of economics and statistics at the Central Bank of Ireland, says the reform will increase supply but negatively impact renters.
Drafting of the upcoming bill is expected to be given priority to ensure it is enacted in time to apply from 1 March 2026. It will provide a legal framework for the establishment of a publicly-accessible rent register and defines small landlords as those with up to three tenancies. The legislation will also permit new rent rates where tenants end the tenancy, or when the landlord ends the tenancy due to a tenant’s breach of obligations.
Rising rent
The RTB’s update for Q3 2025 finds that the standardised average rent for new tenancies rose by 5.5 per cent to €1,696 in the year to Q1 2025. For existing tenancies, this figure rose by 4.4 per cent to €1,452.
In Q1 2025, Dublin experienced its lowest new tenancy growth rate since 2022 at 3.3 per cent while Donegal, Kerry, Kildare, Laois, Limerick, Monaghan, Roscommon, and Tipperary saw increase of over 10 per cent. This demonstrates significant variances in rental inflation trends across regions.
“Donegal, Kerry, Laois, Monaghan, and Tipperary have now experienced eight quarters of high new tenancy rent increases. Following the national extension of RPZs, the RTB will target education and outreach activities in these counties,” the update states.
Landlords with over 100 tenancies provided 13.9 per cent of registered private tenancies in Q2 2025, an annual increase of 11.8 per cent. This also marks the eight consecutive quarterly increase in the proportion of tenancies provided by landlords. Tenancies registered with approved housing bodies (AHBs) grew by 11.7 per cent to 52,989 in the year to Q2 2025.
In Q2 2025, 4,728 notices of termination were recorded, representing a 17.2 per cent year-on-year increase and a 0.7 per cent rise from Q1 2025. Of notices of termination received in Q2 2025, 2,698 (57.3 per cent) were issued due to the landlords intention to sell the property.
In the update, RTB director Rosemary Steen says the organisation will continue to engage with the Department of Housing on upcoming changes to rental law. She adds: “Through the legislative process, we hope to gain new tools to allow us to enforce RPZ rules at a greater scale and pace.”
