Dáil Éireann Debate, Tuesday - 5 April 2022
303. Deputy Sean Sherlock asked the Minister for Housing, Local Government and Heritage if he will report on the Housing for All extended rent pressure zones to 2024 and rents linked to the harmonised index of consumer prices. [17531/22]
View answerThe Residential Tenancies (No. 2) Act 2021 introduced measures in July 2021 to extend the operation of Rent Pressure Zones (RPZs) until the end of 2024. The designation of all existing RPZs has also been extended until 31 December 2024. The Act provides that rent reviews outside of RPZs can, until 2025, occur no more frequently than bi-annually. This provides rent certainty for tenants outside of RPZs for a minimum 2 year period at a time.
The Act also introduced measures to better protect tenants with affordability by prohibiting any necessary rent increase in a RPZ from exceeding general inflation, as recorded by the Harmonised Index of Consumer Prices (HICP).
To address the rent affordability challenges building on foot of the unexpectedly fast rising inflation rate, as recorded by HICP (CSO data for February 2022 shows HICP inflation of 5.7% p.a.), the Residential Tenancies (Amendment) Act 2021 provides, from 11 December 2021, a cap of 2% per annum pro rata on rent increases in RPZs, where the inflation rate is higher. In effect, this will mean that rents in RPZs may only increase by a maximum of 2% per annum pro rata during times of higher inflation.
In all cases, section 19(1) of the Residential Tenancies Acts 2004-2021 prohibits the setting of a rent that exceeds market rent.
