Ireland Approves New Residential Tenancies Bill Amid Ongoing Housing Debate

Dublin: Bringing months of debate and political deliberation to a close, the Irish government has formally approved a new Residential Tenancies Bill aimed at reforming the rental sector.

The legislation has been structured to ensure that existing tenants remain unaffected. However, concerns have emerged over provisions that will require new tenants entering contracts after March 1 to pay rent aligned with prevailing market rates.

Revised Framework for Rent Setting

Under the new law, landlords will be permitted to reset rents to market levels for tenancy agreements signed after March 1. Once established, however, the agreed rent cannot be altered for a period of six years, offering tenants a measure of medium-term stability.

Rent increases within that six-year term will be strictly limited to exceptional circumstances, such as breach of contract or substantial refurbishment works. Even then, any increase will be capped at the rate of inflation or a maximum of two percent—whichever is lower.

Ban on No-Fault Evictions

A key tenant protection embedded in the legislation is the prohibition of “no-fault” evictions during the six-year contract period. Landlords will only be permitted to terminate tenancies where contractual obligations have been breached, reinforcing security of tenure for renters.

Distinction Between Small and Large Landlords

The bill introduces differentiated rules based on the size of a landlord’s property portfolio. Those owning three or fewer rental properties are classified as small landlords and will benefit from certain exemptions. In cases of financial hardship requiring the sale of a property, or where the landlord or a close family member needs the dwelling for personal use, tenancy termination will be permitted. Contracts may also be ended to facilitate substantial renovation or other legitimate needs.

By contrast, landlords owning four or more properties will face stricter limitations. They will not be allowed to evict tenants for personal or family use of the property. However, they may proceed with the sale of a property while tenants remain in occupation.

Political Reaction

Housing Minister James Browne expressed confidence that the reforms would bring greater clarity and stability to the rental market, while also encouraging increased housing supply.

Opposition party Sinn Fein has sharply criticised the legislation, warning that it could lead to significant rent hikes. The party has called for a complete freeze on rent increases for the next three years.

As Ireland continues to grapple with housing pressures, the long-term impact of the new legislation on affordability and supply will be closely watched in the months ahead.