Rent increases in rent pressure zones (RPZs) are to be capped in line with inflation.

Rent controls were introduced in December 2016. These controls mean that landlords of properties in rent pressure zones cannot increase rents by more than 4 per cent a year.

The Department of Housing issued a statement on Wednesday saying the 4% yearly caps will be replaced with caps in line with inflation only.

The Department added that for those outside of RPZs, the provision for bi-annual rent reviews will be extended for an additional three years from January 1st, 2022 to December 31st, 2024.

Currently general inflation lies just below 2%.

The changes to the law will take effect upon the passage of the Bill, which is expected by July 9th.

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