The new Residential Tenancies (Amendment) (No. 2) Bill 2021 will cap rent increases at 2% per year in Rent Pressure Zones (RPZs). The new cap will only operate when general inflation is higher than 2%.
The Bill will also provide for tenancies of unlimited duration. This was a key point under the government’s recently published plan to create a sustainable housing system in Ireland, Housing for All. The Housing for All plan intends to deliver 18,000 cost rental homes between now and 2030.
The new legislation also proposes to provide enhanced tenancy protection by making a ‘Part 4’ tenancy one of unlimited duration after a tenant has been in place for six months and not subject to expiry at the end of a six-year term.
It is intended that this would apply to new tenancies commencing six months or more after enactment of this Bill. In addition, where any existing tenancy is renewed after this time, it will become a tenancy of unlimited duration. As existing Part 4/further Part 4 tenancies terminate/expire over time or are renewed, it will involve the creation of a new tenancy of unlimited duration in respect of any such dwelling, should it remain in the rental sector.
Within 6 years and 6 months of the passing of this Bill, all residential tenancies will have converted to being of unlimited duration.