The Government has approved a 2 per cent cap on rent increases in rent pressure zones.
A rent pressurized zone (RPZ) is a designated area where rents cannot be increased by more than general inflation and applies to new and existing tenancies unless an exemption is being applied.
RPZs are located in parts of the country where rents are highest and rising, such as Dublin, and where households have the greatest difficulty finding affordable accommodation.
The new annual cap will only operate when general inflation is higher than 2 per cent with the Government saying the measure will “result in far lower rent increases for tenants”.
Minister for Housing Darrah O’Brien said:
“In addition to significantly reducing the level of rent increases in RPZs, the Bill will also address long-term security of tenure by introducing tenancies of indefinite duration. This was a key commitment in Housing for All,