1st July 2021 | Housing, Press Releases

Significant curb on rent inflation will benefit thousands of renters across Ireland

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The Green Party has welcomed the Government’s commitment to reforming the Rent Pressure Zone (RPZ) model, which will see significant curbs on rent inflation for thousands of renters across Ireland; and represents a significant step towards securing better long-term rights and protections for renters.

Commenting on the announcement, Spokesperson for Housing, Francis Duffy TD, said;

“The Green Party have continued to campaign for improved rental security, standards and affordability. The reform of the Rent Pressure Zone model, introduced by Minister Darragh O’Brien, will result in significantly lower rent increases for 74% of all tenancies which are in Rent Pressure Zones. The new scheme means that rents in Rent Pressure Zones will only increase if necessary, in line with general inflation as recorded in the Harmonised Index of Consumer Prices (HICP). The current rate of inflation is below 2%, which is significantly lower than the current 4% cap.

“This is one step in a wider programme of reform in the housing sector. The Cost-rental model, which is Green Party policy, is being enshrined in law for the first-time as part of the Affordable Housing Bill and will offer households permanent, affordable rental accommodation. The Green Party in Government will also be working to ensure that tenancies of indefinite duration will be legislated for in the lifetime of this government which will give tenants improved security.”

Cllr Claire Byrne added;

“It is absolutely critical that we put in place stronger protections for renters in Ireland. This is a positive step towards securing better conditions but we still have a lot more to do. Dublin Bay South has one of the highest number of renters in the country with over 50% of residents are in rental accommodation. If I am elected to the Dáil in the upcoming byelection, I will be actively progressing further protections for renters with my Green Party colleagues, including securing tenancies of indefinite duration and cost-rental housing. We need another progressive voice in Government who can make a difference.”

The key provisions as part of the RPZ reform are as follows:

  • All RPZs will be extended to end of 2024
  • 4% cap on rent increases in RPZs will be replaced by restriction of inflation under Harmonised Index of Consumer Prices
  • Will result in far lower rent increases for tenants

There will be an extension of bi-annual rent reviews until the end of 2024 for areas outside of RPZs. This should also provide additional certainty for those outside of today’s reform.