Christopher O'Sullivan (Cork South-West, Fianna Fail)

I move: "That the Bill be now read a Second Time."

I am grateful to all Deputies and to everybody behind the scenes for facilitating the debate today on this urgent legislation in Dáil Éireann. I will be sharing Government time with Minister of State, Deputy Cummins.

The Residential Tenancies (Amendment) Bill 2025 will amend the Residential Tenancies Acts 2004 to 2024 to extend and expand the operation of rent pressures zones, RPZs, to cover the entire country until 28 February 2026. This Bill provides an interim measure to quickly protect all tenants from high rent increases in anticipation of the broader changes announced last week and planned to take effect in March. For all new tenancies created on or after 1 March 2026, stronger tenancy protections will apply for tenants and a national rent control system will apply.

As Members know, on 10 June 2025, the Government approved policy measures to provide for the enhancement of rent controls and tenancy protections from 1 March 2026. Last week, the Government also approved, as an interim measure, the provision of a two-month extension of RPZs and the deeming of all areas of the country as an RPZ from the day after the passing of this Bill until 28 February 2026. Yesterday, the Government approved the publication of this Bill to implement this measure. We are moving fast because renters need protection.

From the day after the passing of this Bill, with the co-operation of both Houses of the Oireachtas and enactment by President Higgins, the current RPZ rent increase restriction will apply throughout the country. No rent increase can exceed 2% per annum pro rata or, if lower, the rate of inflation as measured by the harmonised index of consumer prices, HICP, unless certain exemptions apply. This is an immediate and concrete protection against high rent inflation.

Rent increases outside of RPZs are now at a level where the application of the rent increase restriction can be justified to apply nationally. We want to provide certainty, clarity and stability for the rental sector. The new policy measures announced last week to apply from next March aim to boost investment in the supply of homes. A new national rental control will come into effect on 1 March 2026, immediately following the expiration of the RPZs. Legislation will be introduced later this year to give effect to the new measures announced for March. The impending changes to rent controls have been informed by the findings of the Housing Agency review of RPZs, and potential policy options, and its preferred recommendation to modify the operation of the existing RPZ rent controls.

We aim to operate a national rent control to ensure that any rent increases across the country will be restricted in line with inflation, with limited exceptions. To protect tenants in times of high inflation, we will retain the cap of permissible rent inflation at 2% per annum pro rata, with limited exceptions. We will allow rents for new tenancies created such as first-time tenancy between parties, on or after 1 March 2026 to be set at market value, but in return for far greater security of tenancies for tenants, through six-year tenancies of minimum duration with smaller landlords, that is, landlords with three or fewer tenancies. No-fault evictions will be restricted to smaller landlords and outlawed for larger landlords. The move to a national rent control recognises the reality that tenants throughout the entire country face difficulty in paying their rent. We will continue in March to restrict the rent increases in line with inflation, but linked to CPI and not HICP, and retain that 2% cap.

The Government wants to be clear that at this time, we recognise rents are very high. We also want to be clear that we simply need new investment in rental accommodation, particularly apartments for rent, and that is why we are allowing the rents for new apartments to be linked to CPI, even when inflation exceeds 2%. From 1 March 2026, landlords will be allowed to reset rent for new tenancies, that is, first-time tenancies created between parties, and between future tenancies. However, resetting of rents will not be allowed following a no-fault eviction. Rent resetting will only be allowed where a tenant leaves a tenancy of their own volition or has breached their tenant obligations or the dwelling is no longer suitable to the accommodation needs of the tenant household.

Resetting of rents will not be allowed during any tenancy created on or before 28 February 2026, due to the uncertainty this would cause with existing tenancies.

To counter the risk of economic evictions, the Government put the sector on notice last week, on 10 June, that from 1 March 2026, stronger tenant protections will apply for new tenancies, that is, first time tenancies between parties. A larger landlord with four or more tenancies cannot end a tenancy created on or after 1 March 2026 via a no-fault eviction. The tenancy will be for an unlimited duration after its first six months without a valid notice of termination having been served. A smaller landlord with three or fewer tenancies will be able to end a tenancy created on or after 1 March 2026 via a no-fault eviction, only at the end of each six-year period that follows or, in very limited circumstances, at any time. It is worth noting that no-fault evictions can occur in line with the strictly limited grounds for termination under the Residential Tenancies Acts. The lawful use of these grounds will continue to apply for smaller landlords only from 1 March 2026. Strict termination procedures apply and the Residential Tenancies Board is available to resolve any dispute that might arise. The provision for a six-year tenancy of minimum duration from next March is a real leap forward for tenant protections in return for allowing landlords to reset rents. These changes will have a significant impact for our rental sector, making much-needed investment more attractive while strengthening the protections and providing greater certainty for renters. I accept there is a very fine balance to be struck here in our efforts. We aim to attract investment, but we know that tenants deserve and need fair treatment. We aim for tenancy protections that best suit tenants and landlords.

This is just one strand of a suite of measures, including planning extensions, planning exemptions and a tranche of further key decisions this week and in the coming weeks from the Government and the Minister, Deputy James Browne. This Bill, and the forthcoming legislation to operate from March 2026, represent key progress. We aim to strike a balance and bring clarity and certainty. Without all of these measures, we cannot ramp up the supply needed. The Government is determined and ambitious to get this right. RPZs are due to expire at the end of this year. If we do nothing, all rents go back to market. The Government is not allowing that to happen. For years, the operation of RPZs has had to be extended, time and again. This has created a sense of uncertainty. We are now moving to a permanent national rent control to provide certainty for tenants, landlords and investors across the country.

As we look to the future of our rental sector, it is clear that the status quois not optimal, either for renters or for those providing much-needed homes. This Bill, and the further legislation to follow, represent a decisive step forward in delivering real, practical and long-term protections. Nowhere is this more relevant than in my constituency of Cork South-West. At the moment only one third of the constituency is covered by the protections that renters can get from rent pressure zones. In the other two thirds, including my home town of Clonakilty, Skibbereen and Bantry, significant towns within the constituency, renters are not covered by these protections. They are exposed to large hikes in rent after certain periods. That is not sustainable and cannot continue. This legislation brings in a greater level of protection and certainty for these renters. I know that for renters across my constituency and the country who will now be covered by these RPZs, this will come as a great sigh of relief. The future legislation to follow will also bring further protections and strengthen protections for tenants, along with legislation that will encourage investment in apartments and the provision of housing. This is very welcome. I implore Deputies across the House to get behind this legislation. It is needed for the protection of renters, for future protection and, eventually, to incentivise investment in delivery of apartments and houses in this country. That is the ultimate solution to reducing rents.

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