Major Overhaul of Rental Rules Sparks Concern

The Bill represents one of the most substantial rewrites of Ireland’s rental regulations in over a decade, with far-reaching implications for renters and landlords alike.

Under the new framework, landlords will be allowed to reset rents to full market value whenever a tenant vacates a property, replacing the current 2% rent-increase cap that has operated in Rent Pressure Zones.

Ministers argue the shift will encourage investment in the rental market and stabilise long-term supply, but tenant advocates say the reform risks putting additional pressure on households already struggling with affordability.

Longer Tenancies but Higher Reset Rates

From March, all new leases will transition to six-year tenancies, with the Government claiming this structure will provide greater security and stronger protections for renters who remain in their homes long term.

The legislation also restricts the circumstances under which large landlords can issue evictions, though these limitations do not apply to rent resets.

Opposition parties have heavily criticised the Bill, branding it an “omnishambles” and accusing the Government of prioritising investor confidence over tenant welfare. Several TDs warned that rent resets every six years could create a “steep affordability cliff” for new entrants to the rental market.

During hearings, the Housing Committee received submissions from key housing stakeholders, including the Residential Tenancies Board (RTB), Threshold, the Irish Property Owners Association, and multiple tenant advocacy organisations.

None of the groups told the Committee they believed rents would fall as a result of the proposed changes.

Fears of ‘Massive’ Future Rent Hikes

The Community Action Tenants Union cautioned that the new regime could produce “massive” rent increases, particularly in Dublin and other urban centres where demand continues to outstrip supply.

Threshold warned that if rents rise rapidly following market-rate resets, a future Government could be forced into more aggressive interventions, including potentially reversing the reset provision or imposing emergency rent freezes to stabilise the market.

In light of these concerns, the Housing Committee formally recommended that the Government introduce a “rent brake” mechanism to protect renters from sudden price spikes in the years ahead. Such a measure, it argued, would act as a necessary safeguard in a market already operating at extreme pressure points.

The Committee also highlighted widespread confusion among both landlords and tenants about how the new provisions will work, citing “significant misinformation” circulating online and a general lack of awareness regarding the changes.

To address this, it urged the Department of Housing and the RTB to “significantly ramp up” public communication campaigns before the March deadline.

Student Accommodation and Landlord Rules Under Review

The report also calls for a pause on any planned changes affecting student-specific accommodation, insisting that no adjustments be made without “meaningful consultation” with student unions and academic stakeholders.

Given the ongoing accommodation shortages affecting third-level students, the Committee advised the Department of Housing to conduct a detailed impact assessment before introducing any new rules for student rentals.

A further recommendation suggests redefining the distinction between small and large landlords based on the number of properties owned, rather than the number of tenancies held — a change the Committee argues would more accurately reflect market influence.

These recommendations come at a time when Ireland’s rental market remains stretched to breaking point, with historically low supply and record-high rents across most urban centres.

Housing analysts told M10News the Government risks deepening Ireland’s affordability divide unless additional safeguards are added to prevent uncontrolled rent escalation.

Tenant groups echoed those warnings, arguing that the proposed legislation fails to address structural shortages of affordable homes and could place even more financial pressure on low- and middle-income households.

As the March implementation date approaches, political pressure is intensifying, and many expect the Government will face growing demands to incorporate a rent brake into the final legislation.

Editing by M10News Housing Desk | Contact: housing@m10news.com

Dayo Ade Olusola is the Founder and Editor-in-Chief of M10News, leading coverage of the housing crisis across the UK, Ireland, and Europe. With over four years of journalistic experience and a Diploma in Digital News, he is committed to independent, ethical reporting on housing, property, and policy.