From RPZs to Rolling Tenancies: Proposed Changes to Rent Pressure Zones Explained

In June 2025, the Government proposed a major overhaul of Ireland’s rental regulations, due to come into effect in March 2026. Their stated goal is to create more secure housing for tenants while encouraging long-term investment in the private rental market. However, the new proposed regulations are going to cause significant changes for both landlords and tenants, so understanding the proposals is crucial. In this article, we will explain the proposed changes to the Rent Pressure Zones in Ireland, and how they compare to the current system. It is essential to note, however, that at this stage the announced changes are only a proposal. Although Cabinet has already approved some of the measures, the legislation is likely to undergo further changes before it is officially passed. We will make a full update once the final announcement has been made. The details below are accurate as of the June 2025 announcement. Details may change before legislation is officially passed.

🏠 Current Rent Pressure Zones (RPZs): The Existing Framework

To understand the proposed changes, it's helpful to understand the current system first.

Introduced in 2016, Rent Pressure Zones (RPZs) were an attempt to curb escalating rental costs in areas with high demand. Under the current system, rent increases in RPZs are capped at whichever is lower: either 2% (per annum) or the rate of inflation (measured by the Harmonised Index of Consumer Prices [HICP]). Landlords under RPZs can review rents once every 12 months, provided they adhere to these caps and follow the required notification procedures for both the tenants and the Residential Tenancies Board (RTB).

However, the effectiveness of RPZs is questionable. The 2024 Housing Commission report highlighted that an estimated 42% of landlords were exiting the market between 2021 and 2023, and rent increases often surpassed the intended caps, with Dublin rents rising by 6.5% in 2023. The RPZs are due to expire in December of this year, which is why the government are reviewing them and proposing the following changes to the system:

🏠 What’s Happening to RPZs? The Proposed Changes to Rent Pressure Zones Explained

Currently, Rent Pressure Zones (RPZs) limit rent increases in specific areas (usually near city centres and popular suburbs). But this patchwork approach is being phased out. From March 2026:

• The entire country will be under a Rent Pressure Zone

• Rent increases for existing tenancies will still follow inflation trends, capped at 2% per year.

• Landlords will be able to reset rents to market levels at the end of each six-year tenancy (more on these below) — a major shift from today’s rules.

  • Landlords should note this will not apply for landlords who issue no-fault notices of termination - this rule is intended to stop landlords from evicting their tenants solely to gain the market rate rent increase

  • A 'no-fault' notice of termination is one that is served for reasons other than tenant breach of obligations (so if the landlord is selling the property, for example)

• Extension of Rent Cap for Existing Tenancies: Current tenants will continue to benefit from the existing 2% annual rent increase cap, providing stability for those already in rented accommodation.

🔐 Security of Tenure: From Unlimited Duration to Fixed-Term Framework

One of the most consequential changes in the proposed RPZ reform package is the overhaul of how security of tenure is structured.

Current System: Unlimited Duration After 6 Months

Currently, each tenancy has a 6-month break clause rule where either the tenant or the landlord can end the lease for any reason.

Once that initial 6 months passes, tenants automatically move into a Tenancy of Unlimited Duration, with Security of Tenure. This means that landlords can only issue a notice of termination under very specific circumstances:

• Because they intend to sell the property

• Because they intend to make refurbishments that can't be done while someone is living there

• Because they need the property for either their own use or for the use of a family member

• Because the tenant has broken their obligations (not paying rent, causing damage to the property, anti-social behaviour, etc.)

• Because the property is no longer suited to the tenants' needs (due to household size, for example)

• Because the landlord intends to change the use of the building, for example if it is being converted to a commercial property

New System: Six-Year Fixed Tenancy with Market Reset Option

The government’s proposed reforms would replace the current model with 6-year fixed-term tenancy agreements, during which landlords will be extremely restricted on the reasons why they may serve a notice of termination (more on this below). However, at the end of the 6 years, landlords will be permitted to reset rents to the current market rate, and if they wish to serve a notice of termination they will also have more flexibility to do so at this point. In general:

🛑 Eviction Rules Will Get Stricter

• No-fault evictions will be banned for landlords with four or more properties

• Landlords with three or fewer may still end tenancies, but only in limited, clearly defined circumstances (e.g., selling the property or personal hardship).

  • During the initial 6-year period, small landlords (3 or fewer properties) can only give a notice of termination if:

    • The tenant breaches their obligations

    • The landlord faces hardship (defined as: separation, homelessness, emigrating home from abroad, or bankruptcy)

    • The landlord needs use of the property for an immediate family member (a parent, child, or spouse)

  • Once the 6-years has passed, a smaller landlord (3 or fewer properties) will be able to give a notice of termination for the above reasons plus if:

    • They intend to sell

    • They intend to renovate the property (to an extent that it can't be lived in during the works)

    • They need to use the property for a family member

    • They intend to change the use of the property

🏗️ Encouraging Development? Questionable

Newly built apartments (with planning notices submitted after June 10, 2025) and other new builds will not have the 2% cap on rent increase. The government hope this will unlock more rental supply by encouraging more apartments to be built. However, in our opinion, this won't do anything to address the supply gap as new builds can already be set to market rents. It's not rent caps that are holding back supply, it's the viability gap - the construction costs are just too high compared to what people are willing and able to pay to buy an apartment.

⚖️ Comparing the Current and Proposed Systems

	Current RPZ System	Proposed New System
Rent Pressure Zones	In specific areas	Across the whole country
Rent Increase Cap	2% or HICP inflation, whichever is lower	2% for existing tenancies; inflation-linked for new tenancies
Rent Reset	Not permitted unless the property has been empty or not rented out for a minimum of 2 years	Allowed at the end of each six-year tenancy
Security of Tenure	Tenancies of unlimited duration after 6 months	Minimum six-year rolling tenancies
Eviction Protections	Limited; "no-fault" evictions permitted	Stricter; "no-fault" evictions totally banned for larger landlords

👷‍♂️ Landlords Will Need to Stay Compliant

Yes, compliance will get trickier—but there’s also some opportunity in these proposed regulations. The new model supports rental income growth every six years, giving landlords with suppressed rents a chance to get their properties back on track.

Let our expert team help you navigate this shift with hands-on property management services. Our services are designed to help landlords stay compliant with new legislation, optimize their rental income, and ensure tenant satisfaction as well. By partnering with us, you can focus on your investment while we handle the intricacies of property management.

📩 Get in touch today and so you can stay ahead of the curve and stay compliant!