Michael McGrath (Cork South Central, Fianna Fail)
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458. To ask the Minister for Housing, Planning, Community and Local Government the position in relation to the ability of a landlord to increase the rent by more than the rent pressure zone limit of 4% per annum in respect of a rental property situated within a rent pressure zone in a circumstance in which the existing rent on the property is below the market rent in the area; if the landlord is allowed to bring the rent up to the market rent if this means exceeding the 4% increase limit; and if he will make a statement on the matter. [13740/17]

Simon Coveney (Cork South Central, Fine Gael)
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As set out in the Planning and Development (Housing) and Residential Tenancies Act 2016, rents in a Rent Pressure Zone (RPZ) may only increase by a maximum of 4% annually for a period of 3 years. The first rent review in relation to a property in an RPZ can only take place 24 months after the time that the tenancy was established or the time that the rent was last set. The first rent review in an RPZ after that 24 month period will allow a maximum rent increase of 4%. This is 2% per annum applied pro-rata for the period since the rent was last increased. If the period since the rent was last set is longer than 24 months the permissible increase can be applied pro-rata.

Landlords who have not raised rents for significant periods of time will be able to increase rents in proportion to the period of time since the rent was last set provided the increase concerned does not exceed the limits applicable in Rent Pressure Zones (RPZs) as laid out in the Planning and Development (Housing) and Residential Tenancies Act 2016.

The existing requirement that the rent set may not be above the local market rents for similar properties still applies and the landlord must also provide three examples of rents for similar properties in a comparable area to demonstrate this.