Published by Global Banking & Finance Review®
Posted on June 9, 2025
2 min readLast updated: January 23, 2026
Add as preferred source on GoogleIreland's sitting tenants are exempt from rent cap changes, maintaining a 2% limit. New builds may see rents tied to inflation, impacting the housing market.
DUBLIN (Reuters) -Sitting Irish tenants will not face rent increases above the current 2% a year limit under reforms to rent controls being considered by government, Irish Prime Minister Micheal Martin said on Monday.
Ireland introduced controls in 2016 in a bid to slow runaway rental costs, limiting increases in designated "rent pressure zones" that cover most of the country at an initial 4% a year before cutting it to 2% from 2022.
Reforms to the system are due to be brought to cabinet for sign off on Tuesday.
"Renters right now will be protected from the entire package of measures that will come before government tomorrow, and the emphasis is more in terms of new builds and new developments that we need," Martin told national broadcaster RTE.
Local media reported that under the proposals, rents in newly built properties will no longer be capped at 2% annually from next year but can instead be tied to the rate of inflation.
Ireland's central bank forecasts average annual inflation of 2.1% next year and 1.4% in 2027.
The government had hoped the controls would buy it time to sharply increase supply, but a recovery in homebuilding stalled at 30,000 units last year, pushing the government further from its target of an average of 50,000 new homes a year to 2030.
That included a 24% year-on-year fall in the number of apartments built, most of which are earmarked for the rental sector. Property developers have said rent controls, as well as higher interest rates, have contributed to the collapse.
The government has also faced criticism from opposition parties for considering any changes, citing a more than doubling of rent costs since the aftermath of a property crash in 2013.
(Reporting by Padraic Halpin; editing by William James)
Sitting Irish tenants will not face rent increases above the current 2% a year limit under the proposed reforms to rent controls.
Under the proposals, rents in newly built properties will no longer be capped at 2% annually but can instead be tied to the rate of inflation.
Rent controls were introduced in 2016 to slow runaway rental costs in designated 'rent pressure zones' across the country.
The government aims to sharply increase housing supply, but homebuilding stalled at 30,000 units last year, falling short of their targets.
The government has faced criticism from opposition parties for considering changes to rent controls, citing a more than doubling of rent costs since the property crash in 2013.
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