Rent Pressure Zones retained until end 2024

Fine Gael in Government has ensured that Rent Pressure Zones, which have controlled rent prices over the last number of years, will be retained and refined until the end of 2024.

Rent Pressure Zones were introduced by the previous Fine Gael led government in December 2016 and while Fianna Fail were critical of the policy in opposition, Minister Darragh O’Brien has accepted that their use has been of benefit to those renting their homes. Initially five local authority areas were designated under the RPZ legislation and over time, the number of areas covered by RPZs has expanded considerably, accounting for approximately 74% of all tenancies.

This announcement by the Minister is very much welcomed and will provide certainty to both tenants and landlords. Linking any increases in rent to the harmonised index of consumer price (HICP) is a sensible move and will bring it in line with the new cost rental model which the Government are rolling out as part of the Affordable Housing Bill.

This decision by Government will result in rent increases being limited and will remove the reference to 4% which in some cases had become an annual target.

Restricting the level of upfront payments required of tenants, to a total value that does not exceed two months’ rent to cover any deposit and one month rent in advance, goes far beyond opposition suggestions in a recent Private Members Bill which sought to introduce such a provision for student tenants. It is only right and proper that we have a standard process across the board for all tenancies.

The decision by Government is an acceptance and acknowledgement of the action taken by the previous Fine Gael Government.