Fionntán Ó Súilleabháin (Wicklow-Wexford, Sinn Fein)
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974. To ask the Minister for Housing, Planning, and Local Government to review the rent pressure zone scheme to assess if it has achieved any of its stated objectives; if further districts in counties Wexford and Wicklow can be classed as rent pressure zones, acknowledging the increases in rent in these areas; and if he will make a statement on the matter. [12778/25]

James Browne (Wexford, Fianna Fail)
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Rent Pressure Zones (RPZs) were introduced under Part 3 of the Planning and Development (Housing) and Residential Tenancies Act 2016 to moderate rent increases in those parts of the country where rents are highest and rising fastest. The Planning and Development Act 2024, extended the operation of these rent controls until 31 December 2025.

The Residential Tenancies Board and the ESRI conducted an Individual Property Level Analysis from Q2 2022 to Q1 2024. The main findings of the report show that rent inflation in RPZs is lower relative to other areas since the introduction of the RPZ rent control legislation. The magnitude of the moderation in rent inflation nationally has been in the order of 2-3% per annum.

The analysis showed that the average growth rate in rent across the individual properties tracked was 2.6%, with 60% of tenants seeing no annual increase in rent. Rent increases at individual property level were lower in Rent Pressure Zones. It should be noted that rent increases above 2% in RPZs do not necessarily indicate non-compliance with the RPZ rent controls.

In 2024 my Department completed a review of the Irish rental sector. This review noted clear challenges with the current system of rent controls using RPZs while acknowledging the need to ensure the regulatory system for the rental market adequately balances the interests of landlords and tenants and supports a sustainable long-term model for rent price regulation. My Department has requested the Housing Agency to undertake a review which will assess the operation of RPZs and it is expected that this review will be completed by end of Q1 2025. I will consider the review and any recommendations contained therein once completed and will bring proposals to Government as required.

Section 24A of the Residential Tenancies Acts 2004-2024 sets out the process for designating RPZs. For the purpose of the Act, ‘area’ is defined as either the administrative area of a housing authority or a Local Electoral Area (LEA) within the meaning of section 2 of the Local Government Act 2001.

The criteria to be satisfied by an area under section 24A(4) of the Residential Tenancies Act for designation as an RPZ are as follows:

the information relating to the area, as determined by reference to the information used to compile each RTB Rent Index quarterly report, shows that the annual rate of increase in the average amount of rent for that area is more than 7% in each of at least 4 of the 6 quarters preceding the period immediately prior to the date of the Housing Agency's proposal, and

the average rent for the area in the last quarter, as determined by reference to the information used to compile each RTB Rent Index quarterly report, is:

- in the case of counties Kildare, Meath and Wicklow or an LEA in any one of those counties, above the average rent in the State, excluding rents in the four Dublin Local Authority areas, or

- in the case of any LEA outside of the Greater Dublin Area (i.e. Dublin, Kildare, Meath and Wicklow), above the average rent in the State, excluding rents in the Greater Dublin Area.