But will six-year leases and rent Caps Be Enough to Stabilize Supply?
Ireland’s new reforms promise stability through smarter planning permission and controls.
Government reforms effective March 1, 2026, target the rental crisis by introducing six-year minimum leases. These apply to new tenancies, aiming to protect tenants while encouraging property supply. Landlords gain rights to reset rents to market levels if tenants break leases early, balancing interests.
Rent increases face a 2% annual cap during high inflation periods, tied to the Consumer Price Index otherwise. Newly built apartments and student housing receive exemptions or tailored rules, like three-year reset cycles for student accommodations. This setup slows rent hikes and stabilizes costs.
Planning permission accelerates via incentives in Budget 2026, including tax relief for apartment developments of 10+ units. Cost rental projects gain corporation tax exemptions, spurring affordable housing schemes. These measures support housing scheme approval to expand supply nationwide.
Different rules distinguish small and large landlords, with the goal of retaining investors. After years of exits, packages like mortgage interest relief and Help-to-Buy extensions foster confidence. Commuter areas see potential price stability as supply grows.
Reforms stem from the Housing Agency’s Rent Pressure Zones review, focusing on fairness. Developers benefit from VAT reductions on qualifying apartments and stamp duty repayments for residential conversions. An Bord Pleanála decisions on flood-risk development tie into broader environmental impact reviews for sustainable growth.
Landlords must register tenancies properly, with updates to the rent register aiding compliance. Scenarios for tenants and owners clarify resets: initial market rents allowed for fresh agreements, but caps apply during lease terms. Student specific accommodations adapt annually without full resets initially.
- Six-year leases with 2% cap stabilize tenant budgets.
- Exemptions for new builds promote construction via planning permission.
- Tax incentives retain landlords, preventing supply drops.
- Balanced protections encourage long-term investment.
- Affordable models like cost rentals expand options.
These steps address apartment shortages, moderating levels over time. Policymakers prioritize investment in rentals alongside ownership paths.
Originally reported on Thu, 26 Feb 2026 10:23:42 +0000. Full story
