Dáil Éireann Debate, Tuesday - 19 October 2021
442. Deputy Eoin Ó Broin asked the Minister for Housing, Local Government and Heritage if he has secured Government approval to introduce a new rent pressure zone cap on rents in the private rental sector; if so, when the legislation will be introduced; and the expected value of the new cap. [50504/21]
View answerThe Residential Tenancies (No. 2) Act 2021 introduced measures in July 2021 to better protect tenants with affordability challenges by extending the operation of Rent Pressure Zones (RPZs) until the end of 2024 and prohibiting any necessary rent increase in a RPZ from exceeding general inflation, as recorded by the Harmonised Index of Consumer Prices (HICP). This measure significantly reduces the level of permissible rent increases for the estimated 74% of all tenancies which are in RPZs. The linkage with HICP aims to safeguard continued investment in the sector by existing and new landlords to deliver the much needed supply of high-quality rental accommodation while protecting against a significant increase in rental inflation in the coming years.
When introducing these measures, I was very clear on the need to carefully monitor inflation. At that time, HICP inflation averaged 0.73% p.a. over the previous 3 years but had risen to 1.6% p.a. in the year ending June 2021. I needed to revise the RPZ rent control relatively quickly in July, on a basis that could be independently verified. Given the continuing rise in HICP inflation, up to 3.8% p.a. in September, subject to Government approval, I intend to bring forward legislation in the coming weeks to introduce a cap on rent increases in RPZs. My Department is engaging, as a matter of priority, with the Office of the Attorney General in this regard.
