Taoiseach says no decisions made yet on Rent Pressure Zone changes

THE COMPLETION OF the Rent Pressure Zones (RPZs) review is “imminent”, according to Taoiseach Micheál Martin who reiterated that the government will protect renters. 

Speaking in Cork today, the Taoiseach said the government has no decisions made as of yet on any changes to the system.

Martin said last month that the government is assessing whether an alternative system “which protects renters but also enables people to have a clear, stable environment in which to invest” can be established. 

It is understood the new plan will form part of the government’s new housing plan, which is set to be published before the summer. 

Senior sources told The Journal last week that it is likely that RPZs will not apply to new built apartment blocks and that there will be no cliff edge or sudden rent increases for tenants currently in tenancies. 

However, landlords may be given the rights to reset rents between tenancies. 

Martin confirmed that the government hasn’t received the review, but said the government “will be getting that report in the next number of weeks”. It is understood the housing minister has received the report. 

“Government will consider that then and then make informed decisions upon it,” said Martin. He said the review started last October and government is of the view that it must move to create an environment that’s “stable” and facilitates “sustained investment for the private sector in our housing industry”.

“That’s absolutely critical,” he said.

“We need more private sector development of that. There is no question. And so the context, the prism through which we will examine that will be to create that stable framework over a long time, whilst protecting renters,” said Martin.

During a housing conference last week, the secretary general of the Department of Housing said a number of “tweaks” could be made to existing housing policies under the new plan.

A number of industry stakeholders in the property sector, who attended the housing event, called for changes to the RPZs to be clarified by the summer, so that investors can plan ahead. 

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RPZs are in parts of the country where rents are highest and rising, and where households have the greatest difficulty finding affordable accommodation.

Rents in an RPZ cannot be increased by more than 2% per year.

They were to remain in place until 31 December 2024 but last May, the government agreed to extend them until 31 December 2025.

Upon the announcement that possible changes are in the pipeline, opposition members said the fear of God has been struck into tenants.