Dáil Éireann Debate, Tuesday - 26 July 2022
670. Deputy Brendan Griffin asked the Minister for Housing, Local Government and Heritage if he will outline the obligations and rules pertaining to landlords in relation to rent prices that they can seek in respect of a property in a rent pressure zone; and if he will make a statement on the matter. [40364/22]
View answerThe Residential Tenancies Acts 2004-2022 regulate the landlord-tenant relationship in the rented residential sector and sets out the rights and obligations of landlords and tenants. The Residential Tenancies Board (RTB) was established as an independent statutory body under the Acts to operate a national tenancy registration system and to facilitate the resolution of disputes between landlords and tenants.
The Planning and Development (Housing) and Residential Tenancies Act 2016 introduced the Rent Predictability Measure to moderate rent increases in those parts of the country where rents are highest and rising fastest. The 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 and prohibit any necessary rent increase in an 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 June 2022 shows HICP inflation of 9.6% 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 setting a rent, a landlord cannot exceed the market rent. In general, a rent in respect of a dwelling cannot be reviewed more frequently than annually in an RPZ, or bi-annually outside of an RPZ. In reviewing a rent, a landlord must complete the Notice of Rent Review (available on the RTB’s website) which must be served on the tenant at least 90 days before the new rent becomes payable and requires details of the rent last set for the dwelling and, if the dwelling is in an RPZ, comply with procedures providing for the rent increase restriction and use the Rent Pressure Zone calculator on www.rtb.ie to ensure compliance with the rent setting laws.
A landlord must include details of 3 comparable rents in the Notice of Rent Review.
Not all properties in RPZs are subject to the 2% restriction.
An exemption applies to the first rent setting of a tenancy of a dwelling where:
- no tenancy existed in respect of the dwelling during the two years immediately prior to this current tenancy beginning;
or
- no tenancy existed in respect of the dwelling where the dwelling is a protected structure, or is in a protected structure or is a proposed protected structure during the 12 months immediately prior to the current tenancy beginning. A protected structure is defined in the Planning and Development Act 2000.
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 a further once-off exemption from RPZ rent controls in respect of the first rent setting after such works.
Such works shall result in:
- 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 permanent alteration of the internal layout;
- adaptations for a person with a disability;
- a permanent increase in the number of rooms;
- an improvement in the BER by 3 or more ratings where the original BER was D1 or lower; or
- an improvement in the BER by 2 or more ratings where the original BER was C3 or higher.
Where a tenant is unsure as to the validity of a Notice of Rent Review served, he or she may refer the matter to the RTB for dispute resolution, with redress available to the tenant and may include a direction to pay a refund of any unlawful rent amount paid and an amount of damages of up to €20,000.
