Mullingar to see lower rent rises due to change in rules

The cap on rent increases allowed in Rent Pressure Zone areas such as Mullingar and Athlone is being changed to deliver "far lower rent increases" for tenants, according to the Government.

Up until now, rent rises have been capped at 4% per year in Rent Pressure Zone (RPZ) areas where demand is higher.

The rent pressure zone system is now being extended by the Government, but instead of allowing a 4% increase each year, rents will only be allowed go up in line with inflation as recorded in the consumer price index.

The Government said this will mean "far lower" rent increases, as the Harmonised Index of Consumer Prices has averaged 0.73% over the past three years.

The change is due to be included in the Residential Tenancies (No. 2) Bill 2021, which is expected to pass in the Dáil by Friday next, July 9.

Almost three-quarters of all rental tenancies nationally are now situated within rent pressure zone areas, but for areas outside of these zones, a provision that would only allow rent reviews every two years is being extended until the end of 2024.

Commenting on the changes, Housing Minister Darragh O'Brien said, "Improving the standards, security and affordability for renters is a priority for me and for the Government.

"We are making significant changes in recognition of the fact that tenants continue to face persistent pressures in the rental and housing markets.

"I have always acknowledged that for some, the 4% cap on rent increases in RPZs became a target rather than a limit. We are now taking action to ensure that tenants will only pay rent increases, if required to, which are in line with general inflation, which is currently below 2%."

He added that another change being introduced as part of the new legislation would restrict upfront payments by renters at the start of a tenancy to a maximum of two months’ rent to cover a deposit, and to one month's rent in advance.

"All tenants, including students and the most vulnerable tenants, are set to gain significant protections under this Bill," said Minister O'Brien.

The Athlone local electoral area became a rent pressure zone in July 2019, while Mullingar was added in April of last year.