Seán Ó Fearghaíl (Kildare South, Fianna Fail)
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141. To ask the Minister for Housing, Planning, and Local Government if, in the context of the reform of the private rental sector, he accepts that an unintended consequence of changes could be the departure of landlords who have four properties or fewer from the sector; and if he will make a statement on the matter. [36464/25]

James Browne (Wexford, Fianna Fail)
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In line with a commitment in Housing for All, a review of the Private Rental Market was undertaken by my Department and published in July 2024. One of its recommendations was that a comprehensive examination of the current RPZ system should be undertaken.

The key focus of the review, which was undertaken by the Housing Agency, was to assess the operation of Rent Pressure Zones (RPZs) since their introduction and consider their impact on the market and relevant stakeholders, including the retention of landlords and new investment. It was also to consider whether RPZs should continue without change or be removed, modified or replaced.

The review involved engagement with a wide variety of stakeholders, including investors, representatives of landlord and tenant advocacy groups, academics and the RTB. The Housing Agency submitted its report, ‘Review of Rent Pressure Zones and Potential Policy Options’ to my Department at the end of April and advised that its preferred recommendation was to modify the current RPZ rent controls.

Taking account of the Housing Agency report and its preferred recommendation, the Government has approved changes to rent regulation, which will be introduced nationally from 1 March 2026. The Government also approved stronger tenancy protections, which would apply to tenancies created from 1 March 2026. As new properties enter the rental market, and there is turnover of existing tenancies, the proportion of tenants who benefit from the protections will gradually increase over time.

In order to stimulate new investment and keep existing landlords in the market, resetting of rents to market value for new tenancies (i.e. a first time tenancy between parties) created on or after 1 March 2026 will be allowed as part of the reform of rent controls. Resetting rent to market value will be allowed for the first rent setting and at the end of each 6-year period while the tenancy continues to exist, irrespective of the current number of tenancies a landlord has entered.

Resetting will only be allowed where a tenant leaves a tenancy of their own volition, has breached their tenant obligations or the dwelling is no longer suitable to the accommodation needs of the tenant household.

Legislation will be developed later in 2025 to give effect to the new rent control and stronger tenancy protections. Significant enhancements to the current provision of tenancies of unlimited duration will be provided by introducing tenancies of minimum duration (TMD), involving rolling 6-year tenancies, for any new tenancy created from 1 March 2026 by a smaller landlord (with 3 or fewer tenancies) with a new tenant. In limited circumstances during a 6 year TMD, a smaller landlord will be allowed to end a tenancy. A smaller landlord will also be allowed to terminate a tenancy using the limited grounds under section 34 of the Residential Tenancies Acts 2004 to 2025 (the RTA) at the end of each 6-year period while the tenancy continues to exist.

For existing tenancies, landlords continue to have the right to terminate a tenancy in line with the provisions in place in the Residential Tenancies Acts that applied at the time the tenancy was created.