Ministers yesterday said they would introduce new legislation in response to a review carried out by the Housing Agency, which recommended adapting the existing rent pressure zone system instead of replacing it.

The changes, which will include ending “no-fault” evictions for the majority of renters, will be introduced from 1 March 2026.

Rent increases for apartments built following the enactment of the legislation will be linked to inflation rather than capped at two per cent.

The government says the changes will protect renters while also encouraging investment and keeping landlords in the market, though they have been slammed by tenants’ union CATU as creating a “two-tier rental system”.

Housing, local government and heritage minister James Browne said: “The government has today approved stronger protections and greater certainty for renters, while creating new measures, as part of a suite of work being undertaken to boost supply of new homes and retaining existing landlords in the market.

“We are not building enough apartments to cope with demand. We know we need to build 50,000 homes per year. I’m determined to get there.

“We will be extending rent controls nationally to protect all tenants. This would simplify the operation of rent controls and ensure that all tenants are offered rent control protections.

“Rent increases nationally will be linked to inflation. However, to protect tenants in times of high inflation, it is proposed to retain the cap on permissible rent inflation at two per cent with limited exceptions.

“Furthermore, in order to provide greater security of tenure for tenants, the government will also introduce legislative changes to significantly restrict ‘no-fault’ evictions.

“These changes will further enhance the current provision of tenancies of unlimited duration with the introduction of rolling tenancies of a minimum of six years.

“Tenants entering into a lease with larger landlords, with four or more tenancies, following the enactment of this proposed legislation, will no longer face ‘no-fault’ evictions. 

“Tenants entering into a lease with smaller landlords, three or fewer tenancies, will also benefit from substantially improved tenancy protections.”

He added: “Ultimately, we must improve the situation for renters, and a key piece of the jigsaw is in increasing the supply of rental accommodation.

“Currently, rent control is linked to a property, rather than a tenancy. The Housing Agency report has highlighted this as a deterrent to investment.

“In order to stimulate investment and keep existing landlords in the market, it is proposed that the resetting of rents to market value for new tenancies will be allowed as part of the reform of rent controls.

“To avoid the provision to reset rents leading to economic evictions, where landlords seek to move tenants out so that they can charge a higher rent, it is intended that resetting rents will not be allowed for ‘no-fault’ evictions.

“This measure will also facilitate landlords to reduce rents for tenants if they wish, knowing they would be able to reset to the market rent at the start of a new tenancy.”

John Cummins, minister for planning and local government, said: “There is a critical need to attract investment into new apartments and for our rental market across the country, and what we are proposing is that rent control for new apartments constructed, following enactment of the legislation, would be linked to inflation in order to provide certainty, clarity, and encourage investment.

“The current system is not optimal — for renters or for potential new landlords — and changes need to be made.

“The changes government are proposing today will provide significantly stronger protection for tenants and are finely balanced between the interests of tenants and the need for further private investment in the private rental market.

“The measures, providing greater certainty and protection against no fault evictions, will also be a critical intervention in preventing homelessness.”

Amelia Melanson, member of CATU’s national committee, said: “Rent pressure zones are the bare minimum.

“While extending them to apply for all existing tenancies is better than lifting them wholesale, they still allow for a guaranteed two per cent increase in rent for landlords and will not address the problem of high rents.

“Rents need to be cut and capped for all tenancies, and evictions banned, with no loopholes or two-tier systems.”