The Residential Tenancies (Amendment) Act 2019 Act provides a legal definition of ‘substantial change in the nature of rental accommodation’ to illustrate the type of works to be carried out to a rental property to qualify for an exemption from the annual rent increase restriction applicable in Rent Pressure Zones (RPZs).
Such works shall result in:
- a permanent extension increasing the floor area by 25%; or
- an improvement in the Building Energy Rating (BER) by at least 7 ratings; or
- at least 3 of the following:
a) a permanent alteration of the internal layout; b) adaptations for a person with a disability; c) a permanent increase in the number of rooms; d) an improvement in the BER by 3 or more ratings where the original BER was D1 or lower; or e) an improvement in the BER by 2 or more ratings where the original BER was C3 or higher
and the aforementioned works do not solely consist of works carried out for the purposes of compliance with the minimum standards in rented accommodation, as prescribed in the Housing (Standards for Rented Houses) Regulations 2019.
The exemptions to the RPZ rent increase restriction were the subject of careful consideration and debate in the Houses of the Oireachtas during the passage of the 2019 Act .
The new legal definition has provided better tenancy protection and greater clarity for tenants, landlords, the Residential Tenancies Board (RTB) and the courts. I have no plans at this time for any further changes to the exemptions to the RPZ annual rent increase restriction.