Clare’s Minister of State claims the Government’s new rental controls are part of a “balanced approach” that will protect tenants while incentivising development.
A new plan agreed by Cabinet last night will restrict the amount by which rents can be increased from year-to-year nationwide as the entire country becomes a Rent Pressure Zone.
In what’s widely being viewed as a housing policy U-turn, every existing tenancy in Ireland will now be regarded as within an RPZ, meaning rent increases will be capped at 2% or linked to inflation – whichever is lower.
New builds won’t be capped however, with increases or decreases to be tied entirely to inflation.
Another aspect of the plan is that landlords will be categorised as either large or small, with large landlords deemed to be those with four or more properties.
Under this system, large landlords will be prohibited from carrying out no-fault evictions.
Housing Minister James Browne says this will lead to more investment in supply.
The changes are being welcomed by many including the Irish Property Owners Association which says the move will allow landlords to reset rents to the market rate thus making being a landlord more sustainable.
Some aspects of the plan are coming under criticism however including the categorisation of landlords with as many as three properties as “small landlords”, as well as the power the plan seems to be giving these figures to “set their own rules” around evicting tenants.
Shannon Sinn Féin representative and homeless support worker Shane Doody insists rent caps need to be imposed.
Tulla-based Fianna Fáil Minister of State Timmy Dooley meanwhile claims what’s being implemented is exactly what oppositions TDs and housing charities have been calling for.
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