Rent Pressure Zones Increase In Landmark Expansion

A total of 19 new rent pressure zones are set to be introduced across Ireland, representing the largest expansion since the zones were first launched in 2017.

The zones are spread over 11 counties including Limerick, Kilkenny, Waterford and Westmeath.

Making the announcement today, 02 July, Housing Minister Eoghan Murphy said: "This is the most significant expansion of rent controls since the rent pressure zones were first introduced two years ago. Nineteen new areas will now come under the 4% annual cap. It is a direct result of the new rent reforms that were introduced into law last month. We brought these changes in because while our rent controls are having an impact, they are clearly needed outside of Dublin and in other existing high rent areas. Because of these changes roughly 65% of renters are now covered by rent controls."


The Minister continued: "Rents are still too high and in some parts of the country are still rising unsustainably. This was anticipated and that's why we moved to change the criteria for RPZ designation. It is also why we strengthened the enforcement of existing rent pressure zones. These changes will take time to have an effect as they have only recently become law. It is also important to remember that the short term letting reforms should now also see an increased supply of long term lets which should also help tackle rising rents.

"The new rent control areas are important, but so are new protections for renters everywhere that were introduced last month with the rent reform bill which had cross-party support in the Oireachtas. I know some will call for a rent freeze as a result of the latest information. Rent freezes might seem like a good idea for people who are currently renting because they freeze the rent. But they also freeze the supply and that is not helpful in terms of people who are looking for somewhere new to rent today or tomorrow. We will continue to monitor rent pressures and make improvements in line with the recommendations of the Residential Tenancies Board."

This announcement comes on the back of the Residential Tenancies Board's Rent Index Report for Q1 2019 which was published today and is produced in conjunction with the Economic and Social Research Institute.