Investment funds are getting around the rules regulating rent increases and are setting rents “that go beyond the maximum” allowable level, the Institute of Professional Auctioneers and Valuers (IPAV) has claimed.
The current Rent Pressure Zone (RPZ) legislation aims to cap rent increases at 4 per cent in designated locations.
However, landlords bringing new rental properties to the market or new tenancy agreements are exempt from the rules and free to charge what they like.
IPAV’s chief executive Pat Davitt said the derogation is allowing “big players” to set rent levels “on a continuous basis that go beyond the maximum annual 4 per cent allowable under the rules”.
“So we don’t know if the RPZs are working or if it’s the new properties that are driving rents higher,” he said.
Mr Davitt said the Residential Tenancies Board (RTB), which tracks rent inflation, is not, as yet, able to
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