Nationwide Rent Pressure Zones: Key Updates for 2025
In a significant development for Ireland's rental market, the government has extended Rent Pressure Zones (RPZs) nationwide, effective from 20 June 2025. This move aims to provide greater rent stability across the country, impacting both tenants and landlords.
What Are Rent Pressure Zones?
RPZs were introduced in 2016 to limit annual rent increases in areas experiencing rapid rent inflation. Previously, only certain high-demand areas were designated as RPZs. With the recent legislation, all private and student-specific accommodation tenancies now fall under RPZ rules, regardless of location.
Key Provisions of the New Legislation
Nationwide Application: As of 20 June 2025, all rented properties in Ireland are subject to RPZ regulations.
Rent Increase Cap: Landlords can increase rent once a year by either the rate of inflation or 2%, whichever is lower, based on the Harmonised Index of Consumer Prices (HICP).
Temporary Extension: Existing RPZ provisions, initially set to expire on 31 December 2025, have been extended until 28 February 2026, ensuring a consistent framework during this period.
Implications for Landlords and Tenants
Landlords: While the rent increase cap provides some predictability, it may also limit potential rental income. Landlords should consider this when planning long-term investment strategies.
Tenants: The nationwide application of RPZs offers enhanced rent stability, particularly beneficial in regions where rent inflation has been a concern.
Looking Ahead
The government has indicated that further legislation is expected to enhance Ireland’s rent control framework, with updates anticipated in the coming months.
