Housing Minister summarises government’s rental sector reform

As Minister for Housing, my aim is to get building the homes we need for people – places for people to grow up, grow old, and build communities. It is essential for all of us as a society, now and into the future, and I am treating it as an emergency, writes Minister for Housing, Local Government and Heritage, James Browne TD.

The question of supply, and how we invigorate it, is complex, multifaceted and requires cross-government mechanisms as a response. There are strands, many simultaneous, that are part of the housing jigsaw. In the last few weeks [June 2025], I have made significant moves towards getting our sector moving.

One piece of that jigsaw is our rental sector.

The private rental sector is a crucial part of our housing mix across the country, particularly in our urban centres. The sector has seen substantial growth in recent years, in fact the Residential Tenancies Board report that private tenancy numbers rose by 7.6 per cent annually to 240,964 in Q4 2024, while private landlord numbers rose by 4.5 per cent annually to 105,594.

However, the system has not been optimal – for renters or potential new landlords. Investment market reports indicate that very little private investment of scale has gone into the development of new build homes for the private rental sector since mid-2022. I have heard and understood the challenges – and changes that needed to be made – from affordability pressures for tenants to a dwindling supply of rental accommodation.

In response, I have delivered an ambitious package of rental sector reforms and significant improvements in both regulations and incentives to attract investment to boost the supply of new apartments for our rental market across the country.

The major reforms announced on 10 June 2025 are now underpinned by the newly published Residential Tenancies (Amendment) Bill 2025 approved by government on 17 June. The Bill reflects a rebalancing of priorities to strengthen protections for renters while simultaneously encouraging private investment, particularly apartment development.

“The Housing Commission, the ESRI, the OECD, and the IMF have all identified the current rent control system as an impediment to the supply of new private rental accommodation.” Minister for Housing, Local Government and Heritage, James Browne TD

From rent pressure zones to nationwide rent controls

A cornerstone of the reform package is the nationwide extension of rent controls. Previously, rent pressure zones (RPZs) – which capped annual rent increases at 2 per cent or the level of inflation (whichever was lower) – applied to around 83 per cent of tenancies. As of 20 June 2025, RPZ restrictions now apply across the entire country, providing all renters with the same degree of protection.

This move follows The Housing Agency’s review of RPZs, which found that the uneven application of rent controls created uncertainty for tenants and a disincentive for investment. The Housing Commission, the ESRI, the OECD, and the IMF have all identified the current rent control system as an impediment to the supply of new private rental accommodation.

Simplifying the regulation will provide certainty, clarity, and encourage investment. In order to stimulate investment and keep existing landlords in the market, resetting of rents to market value for new tenancies will be allowed as part of the reform of rent controls. Resetting rents will only be allowed when a tenant leaves voluntarily, breaches their obligations, or the dwelling no longer suits the tenant’s needs. It will not be allowed for ‘no fault evictions’.

Critically, the Government has reaffirmed that the cap on rent increases at 2 per cent will remain in place even during periods of high inflation.

Security of tenure: Strengthening tenant and landlord rights

From 1 March 2026, larger landlords – defined as those owning four or more tenancies – will no longer be permitted to terminate a tenancy without grounds where the tenant has complied with their obligations. This is an effective phasing out of ‘no fault evictions’.

For smaller landlords (those with three or fewer tenancies), new rolling six-year tenancies will be introduced. During each six-year term, termination will only be permitted in limited and clearly defined circumstances such as personal hardship, requirement of the property for a close family member, or serious issues with the tenancy.

At the end of each six-year cycle, grounds for ending a tenancy will include sale, substantial renovation, change of use, or family use – echoing provisions in existing legislation but with tighter conditions.

These measures are designed to enhance the security of tenure while still offering landlords necessary flexibility.

“We have committed to achieving a stable and predictable policy to attract and retain the private investment needed to meet our
housing targets.”

Legislative and policy infrastructure

The changes are backed by the Residential Tenancies (Amendment) Bill 2025, which was approved by government on 17 June 2025 for urgent enactment. The legislation extends existing RPZs and ensures all tenancies are covered by rent increase restrictions until 28 February 2026, before the broader reforms come into effect from 1 March 2026.

Our latest reforms mark a significant evolution in the country’s approach to rental policy, addressing longstanding concerns around tenant security and supply. By pairing increased protections with investment incentives, the reforms aim to stabilise the sector and represent meaningful steps towards a more balanced and resilient rental market – one that works for both tenants and landlords in the long term.

Supply: Supporting broader housing delivery

While regulatory reform is critical, protections for renters must be matched by greater investment and increased housing supply. Increasing the supply of private rental accommodation is crucial in supporting the Government’s overall housing targets and addressing affordability in the private rental sector.

Investment market reports indicate that very little private investment of scale has gone into the development of new build homes for the private rental sector since mid-2022. Numerous market and expert reports have all identified the current rent control system as an impediment to the supply of new private rental accommodation.

Therefore, we have committed to achieving a stable and predictable policy to attract and retain the private investment needed to meet our housing targets. Given the nature of investment decisions and large-scale residential development, increased supply of much needed apartments for the private rental sector will follow, but it will take time for this supply to become a reality.

Looking ahead, I will publish a new national housing plan in the coming months to consolidate these supply-side initiatives and a roadmap to scale up the next phase of housing delivery.