New Proposal Lets Landlords Hike Rents by 2 Percent After RPZs End

Minister for Housing James Browne has received a policy proposal from the Housing Agency outlining possible changes to the current rent control system. The paper, delivered to the Department of Housing within the past week, presents three options regarding the future of rent pressure zones, which are scheduled to lapse at the end of 2025.

The three scenarios include continuing with the current regulations, removing the system entirely, or permitting landlords in designated zones to raise rents by more than the existing 2% annual cap. According to individuals familiar with the contents, the third option—easing restrictions on rental increases—is the one recommended in the document. However, sources emphasize that this remains an advisory paper, and no formal decisions are expected from Minister Browne or the Cabinet for several weeks.

 

Rent pressure zones were originally implemented in areas experiencing the highest levels of rent inflation and limited access to affordable housing. These regulations have prevented landlords from increasing rent by more than 2% annually. Although the framework was initially intended to expire by the close of 2024, the Government decided in May of that year to extend the policy through December 31, 2025.

During a public address in March, Taoiseach Micheál Martin confirmed that the Government was actively assessing whether to maintain the current rent cap structure or introduce a new policy that balances renter protections with a stable climate for property investment.

Political Fallout from Housing Leadership Debate

The release of the options paper coincides with growing political tensions over the recent controversy surrounding the proposed leadership of the Housing Activation Office. The Government’s handling of the role—often referred to in public discourse as a housing czar—has drawn sharp criticism from opposition parties.

 

Sinn Féin TD Donna McGettigan questioned the Government’s trust in Minister Browne, referencing recent events as a test of confidence in his ability to address the housing crisis. She also objected to the proposed €430,000 salary for Brendan McDonagh, the current chief of NAMA, who subsequently withdrew his name from consideration. McGettigan equated the cost of the role to the salaries of 11 Gardaí, arguing the funds could be better allocated.

Echoing this criticism, Social Democrats TD Gary Gannon labeled the situation a political debacle and stated that the current Government is unlikely to meet its housing targets for the year. He pointed out that the independent housing commission had recommended a legislatively backed executive, not a singular authoritative figure.

In response, Fianna Fáil TD and Minister for Higher and Further Education James Lawless defended the Government’s position. He stated that the public is not interested in political theatrics and affirmed the need for a structured Housing Activation Office. He clarified that the administration had not officially referred to the position as a housing tsar.

 

Further commentary came from Tánaiste and Fine Gael leader Simon Harris, who addressed the controversy during a televised interview. He dismissed the appropriateness of the proposed salary for the leadership role and emphasized the importance of identifying the right skill set for the position rather than focusing on any one candidate.

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