Dáil Éireann Debate, Thursday - 8 September 2022
602. Deputy Sean Sherlock asked the Minister for Housing, Local Government and Heritage if he will provide an update on an extension of rent pressure zones to 2024 and rents linked to the harmonised index of consumer prices under Housing for All. [43314/22]
View answerMy Department provides quarterly progress reports on all actions under Housing for All which are available on: www.gov.ie/en/collection/9d2ee-housing-for-all-quarterly-progress-reports/.
As committed to under Housing for All, 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. The designation of all existing RPZs has also been extended until 31 December 2024.
The Act also introduced measures to better protect tenants with affordability issues 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 July 2022 shows HICP inflation of 9.6 % p.a.), the Residential Tenancies (Amendment) Act 2021 provides, from 11 December 2021, for a cap of 2% per annum pro rata on rent increases in RPZs, where the inflation rate is higher. In effect, this means 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 2004-2022 prohibit the setting of a rent that exceeds market rent.
