The Strategy for the Rental Sector, published on 13 December 2016, outlined the Government's proposals for Rent Predictability, whereby an order can be made to moderate the rise in rents in areas of the country where rents are highest and rising, and where households have greatest difficulties in finding affordable accommodation. In these areas, called Rent Pressure Zones, rents will only be permitted to rise by a maximum of 4% annually. This measure has been introduced with immediate effect in Dublin and Cork with the enactment of the Planning and Development (Housing) and Residential Tenancies Act 2016, which was signed by the President on 23 December 2016.
If a valid notice of new rent was served on a tenant on or before 23 December 2016, or a rent review had commenced before this date, then the new provisions regarding rent pressure zones do not apply. However, the rent certainty provisions introduced in 2015, which require a minimum period of two years between rent reviews, remain in force for the first rent review carried out after the designation of a rent pressure zone. Therefore, a rent review may not be commenced and a valid notice of new rent may not be served until that minimum period has expired. Subsequent rent reviews in a rent pressure zone may take place annually.
The existing requirement that the rent set is not above the local market rents for similar properties still applies and the landlord must also provide three examples of rents for similar properties in the locality to demonstrate this.
Where there is a dispute regarding the appropriate period of notice to be given in a notice of new rent or the validity of a notice of new rent, the dispute may be referred to the Residential Tenancies Board (RTB) for resolution.
