Irish Government Plans Reform of Rent Caps to Boost Housing Supply

The Irish government is moving forward with reforms to rent controls aimed at balancing renter protections and encouraging private sector investment in new apartment construction. The proposed changes would maintain the existing 2% annual rent increase cap for current tenants but exempt newly built apartments from this limit, allowing rents on new properties to rise in line with inflation. New tenancies are expected to receive at least six years of security of tenure, while landlords will be permitted to increase rents when tenants voluntarily leave, though not when tenants are served a notice to quit. These reforms are part of a broader strategy to address Ireland's acute housing shortage and record-high homelessness figures by stimulating more apartment building. While the government insists the measures are well-balanced and necessary to protect renters and attract investment, opposition parties and tenant advocates have criticized the changes, warning they may put renters at risk. The proposals are set for final approval by Cabinet following further discussions among government leaders.