The RPZ system, due to expire at the end of the year, has in effect been extended nationwide and sees all existing tenancies in Ireland come under a 2% cap or capped at the rate of inflation, whichever is lower.

Rent increases in new developments will be capped by inflation and not the 2% cap to incentivise the development of new apartments.

New tenancies created from March 1, 2026 onwards will be set at market value and offer six-year minimum rolling tenancies.

At the end of the six-year tenancy, the rent can be reset and “put back to the market”, meaning the first series of rent resets will take place in 2032.

Part of a swathe of new rent and tenancy reforms, the package will also see large landlords, defined as having four or more tenancies, be banned from carrying out no-fault evictions for tenancies beginning from March 1, 2026.

A small landlord can end tenancies via a “no-fault eviction” in limited circumstances, such as economic hardship or to move a family member in, but if they do that, they cannot reset the rent.

Minister for Housing, Local Government and Heritage, James Browne, said the decisions have been informed by the findings of the Housing Agency Review of Rent Pressure Zones and Potential Policy Options, and the Agency’s preferred recommendation to modify the existing operation of the current rent controls.

“The government has today approved stronger protections and greater certainty for renters, while creating new measures, as part of a suite of work being undertaken to boost supply of new homes and retaining existing landlords in the market,” he said.

“We are not building enough apartments to cope with demand. We know we need to build 50,000 homes per year. I’m determined to get there.

“We will be extending rent controls nationally to protect all tenants. This would simplify the operation of rent controls and ensure that all tenants are offered rent control protections.

“Rent increases nationally will be linked to inflation. However, to protect tenants in times of high inflation, it is proposed to retain the cap on permissible rent inflation at 2% with limited exceptions.

“Furthermore, in order to provide greater security of tenure for tenants, the government will also introduce legislative changes to significantly restrict ‘no fault evictions’. These changes will further enhance the current provision of tenancies of unlimited duration with the introduction of rolling tenancies of a minimum of six-years.

“Tenants entering into a lease with larger landlords (with four or more tenancies), following the enactment of this proposed legislation, will no longer face ‘no fault evictions. Tenants entering into a lease with smaller landlords (three or fewer tenancies) will also benefit from substantially improved tenancy protections.”

Speaking to the need to balance protections for renters with the need to attract greater investment in new supply, Minister Browne explained: “Ultimately, we must improve the situation for renters, and a key piece of the jigsaw is in increasing the supply of rental accommodation. Currently, rent control is linked to a property, rather than a tenancy. The Housing Agency report has highlighted this as a deterrent to investment.

“In order to stimulate investment and keep existing landlords in the market, it is proposed that the resetting of rents to market value for new tenancies will be allowed as part of the reform of rent controls. To avoid the provision to ‘reset rents’ leading to ‘economic evictions’, where landlords seek to move tenants out so that they can charge a higher rent, it is intended that resetting rents will not be allowed for ‘no fault’ evictions. This measure will also facilitate landlords to reduce rents for tenants if they wish, knowing they would be able to reset to the market rent at the start of a new tenancy.”

The key changes approved by the government include:

•  legislation to be introduced aimed at increasing the supply of rental accommodation and providing significant improvements to security of tenure for all new tenancies
• amendments to rent regulation will be introduced to promote investment and protect all tenants nationally
• a national system of rent control with rent increases for all tenancies to be capped by inflation (Consumer Price Index). In times of high inflation, rent increases for most tenancies will be capped at a maximum of 2%
• significant improvement to tenant protections for all new tenancies (after March 1st 2026) further enhancing security of tenure for all new tenancies created after the introduction of new legislation
• tenancies of unlimited duration to be enhanced by introduction of rolling-six year tenancies of minimum duration for smaller landlords (three or fewer tenancies) with restricted grounds for ending a tenancy
• ending of ‘no fault evictions’ for larger landlords (four or more tenancies). Landlords with four or more tenancies will not be able to end a tenancy where the tenant has complied with their obligations except in very limited circumstances
• all landlords will continue to have the right to terminate a tenancy where there is a breach of tenant obligations or where the dwelling is no longer suited to the needs of the tenant household
• smaller landlords (three or fewer tenancies) will only be able to terminate a tenancy during the six-year tenancy in limited circumstances
• at the end of each six-year tenancy, a smaller landlord will have the right to terminate a tenancy due to intention to sell; renovation of the property; require property for family member, or change of use
• all landlords who have entered into a new tenancy arrangement on or after March 1st 2026 will have the right to reset rent where the rent is below market at the end of each six-year tenancy, unless a ‘no fault eviction’ occurs. Under the Residential Tenancies Acts it will remain prohibited to set a rent above market rent
• all landlords will be able to sell a property with tenant in-situ at any time
• to incentivise new development of apartments rent increases in new developments subject to a commencement notice to planning authorities on or after today, will be capped by the Consumer Price Index.