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PRS Rent Reform – Legislation Considerations

20/06/2025
Insights Blog

The Government announced changes to rent controls and increased tenant protections in the private rented sector on 10 June 2025.

Read more about the announcement in our recent briefing: Government Announces Measures on PRS Rent Reform – Arthur Cox LLP.

The main changes (based on the Government press release) and what we hope to see clarified in the draft legislation is set out below.

 

Change What requires clarification in the draft legislation?

 
  • Extension of rent pressure zones (RPZs) to the entire country.

 
  • Implemented – see below. *
  • From 1 March 2026, rent increases for all tenancies to be capped by inflation (Consumer Price Index/CPI).
  • 2% cap to apply in times of “high inflation”.
  • Whether this will apply to existing as well as new tenancies.
  • Meaning of “high inflation”.
  • Rent increases for tenancies of new apartments to be capped by inflation (CPI).
  • No additional rent cap on top.
  • Whether this will apply to new houses.
  • Increased tenant protections for tenancies created after 1 March 2026.
  • 6-year tenancies of minimum duration (TMDs) with restricted termination grounds for smaller and larger landlords.
  • Confirmation that TMDs will only apply to smaller landlords (with 3 or fewer tenancies).
  • Confirmation of the “very limited circumstances” in which larger landlords (4 or more tenancies) can terminate tenancies on “no fault” grounds.
  • All landlords to have the right to reset rent to market level when a tenancy ends, unless a “no fault eviction” occurs.
  • Confirmation that rent resets will be permitted where a tenant leaves the tenancy voluntarily at any time.
  • Confirmation that rent resets will be permitted where the same tenant remains in situ for 6 years.

 

*Has the Government implemented any of the changes?

  • Yes. The Residential Tenancies (Amendment) Act 2025 was signed into law on 19 June 2025 extending RPZs to the entire country and extending current RPZs to 28 February 2026.
  • This means that the current rules capping rent setting and rent increases at the lower of 2% or inflation (as recorded by the Harmonised Index of Consumer Prices/HICP) apply to all areas from 20 June 2025 to 28 February 2026.

Will the extension of RPZs to the entire country impact institutional PRS landlords?

  • No. Most institutional PRS landlords are already operating in RPZs, which cover approx. 80% of the country, so this change is not hugely significant for them.
  • Smaller landlords in areas not currently subject to RPZs will be impacted more.

 What about student accommodation?

  • The Government press release did not mention student accommodation.
  • It was reported and confirmed by the Ministers for Housing and Higher Education on 16 June 2025 that exemptions to the new rules are being considered for purpose-built student accommodation (PBSA).
  • The exemption may mean that PBSA will continue to be subject to the current rules whereby rent setting and rent increases are capped at the lower of 2% or inflation (HICP) – this will need to be clarified in the draft legislation.

When will the draft legislation be published?

  • Heads of the draft legislation will be published before the Dáil summer recess in mid-July.
  • It may be the autumn before the detailed legislation is published.

We are monitoring developments closely and will publish further briefings as more information becomes available.

For tailored advice on the impact of last week’s announcement, please contact a member of the Arthur Cox Real Estate Group.