Rent Pressure Zones

Table of Contents

Rent Pressure Zones

The Housing Agency, following consultation with the relevant housing authority, may make a proposal in writing to the Minister that an area be prescribed by order as a rent pressure zone. As soon as practicable, the Minister shall request the Director to make a report to the Minister in such form as the Minister may approve, on whether, in so far as the area the subject of the proposal is concerned, the criteria specified below for designation as a rent pressure zone are satisfied.

Within 2 weeks, the Director shall furnish the Minister with the rent zone report. In making a rent zone report to the Minister, the Director shall confirm whether or not the following criteria have been met

the information relating to the area concerned, as determined by reference to the information used to compile each Rent Index quarterly report, shows that the annual rate of increase in the average amount of rent for that area is more than 7 per cent in each of at least 4 of the 6 quarters (each being a period of 3 months that is contemporaneous with the period to which the Rent Index quarterly report concerned relates) preceding the period immediately prior to the date of the proposal by the Housing Agency to the Minister, and
the average rent for the area in the last quarter, as determined above is above the average national rent (commonly referred to as the Rent Index national standardised rent) in the last quarter.

Revised Criteria for Designation

The Residential Tenancies Act 2019 amended the criteria for determination and designation by ministerial order of rent pressure zones. Rent indexes published by the Board are used. The Minister may, on a recommendation from the Housing Agency, by order revoke an order made.

In making a recommendation, the Housing Agency shall consider and provide a report to the Minister, on such matters as may be prescribed having regard to —

the operation of the rental market,
the operation of the housing market, and
changes in rent levels in the period since the area concerned was designated as a rent pressure zone;

Before making such a recommendation and providing a report under this subsection, the Housing Agency shall consult with the Board and the housing authority concerned on the matter.

No more than Market Rent

The initial or reviewed rent may not be an amount greater than the market rent. Rent reviews may take place no more frequently than once a year unless there has been a substantial change in the nature of the accommodation in the interim. The period is two years for most tenancies outside a RPZ since the 2015 Act came into force. Either party to seek a rent review where provision is not made for one by way of a lease or tenancy agreement.

Market rent is the rent that a willing tenant would give and a willing landlord would take for vacant possession having regard to the other tenancy terms and the letting values of dwellings of a similar size, type and character and located in a similar area.

In the case of a tenancy of a dwelling in a rent pressure zone the landlord must furnish the tenant, in writing, with the following information at the commencement of the tenancy:

the amount of rent that was last set under a tenancy for the dwelling;
the date the rent was last set under a tenancy for the dwelling;
a statement as to how the rent set under the tenancy of the dwelling has been calculated having regard to the restrictions applicable.

RPZ Increase (Original Provisions)

Until the 2021 Act, the rent under a tenancy of a dwelling in a rent pressure zone was to not be greater than the amount determined by the formula R x (1 + 4% x t/m).

m was 24, for the first review of a pre-24th December 2016 tenancy or 12, in any other case,
R is the amount of rent last set under a tenancy for the dwelling,
t is generally the number of months between the date the current rent came into effect under a tenancy of the dwelling and the date the rent for the tenancy of the dwelling will come into effect after the rent review

Where the dwelling was previously let, it is the number of months between the date the rent became payable under the previous tenancy where the dwelling was last let, and the date the rent for the new tenancy of the dwelling will come into effect.

This did not apply where

a dwelling has not at any time been the subject of a tenancy during the period of 2 years prior to the date the area is prescribed as a rent pressure zone or deemed to be so prescribed;
if, in the period since the rent was last set under a tenancy for the dwelling a substantial change in the nature of the accommodation provided under the tenancy occurs, and the rent under the tenancy, were it to be set immediately after that change, would, by virtue of that change, be different to what was the market rent for the tenancy at the time the rent was last set under a tenancy for the dwelling.

RPZ Increase (Post 2021 Act)

Since 16th July 2021, the inflation rate HICP (Harmonised Index of Consumer Price) has been used to set and review rents in RPZs. The rent in RPZs cannot be increased by more than the rate of general inflation. This is provided for under the consumer price index value formula.

Any increase in the rent last set is calculated by calculating as a percentage any difference between the HICP value that applied on the date the rent was last set and the HICP value that applies on the new date and applying the amount of the percentage calculated to the rent last set.

“HICP values ’ means the values contained in the most recent data available monthly in the All-Items Harmonised Index of Consumer Prices in relation to Ireland and published monthly by the Central Statistics Office

CPI & 2% Cap

From 11th December 2021, the rules have been amended again for setting the rent for a tenancy in an RPZ. These rules apply both to the rent at the start of the tenancy and during the tenancy by way of a rent review.

The earlier rules prohibited any rent increase in an RPZ from exceeding general inflation (as recorded by HICP). The revised rule provides that the rent previously set, cannot increase by more than 2% per year pro-rata, where HICP inflation is higher.

The RTB website provides a Rent Pressure Zone Calculator to calculate any increase in rent in a rent pressure zone and shall publish. The Board also keep up to date a table of HICP values published by the Central Statistics Office.

Exceptions to RPZ Cap

The RPZ rent increase cap does not apply where the dwelling has not at any time been the subject of a tenancy during the period of 2 years prior to the date the area is prescribed as a rent pressure zone or deemed to be so prescribed;

The RPZ rent increase cap does not apply if since the rent was last set under a tenancy for the dwelling, in that period

a substantial change in the nature of the accommodation provided under the tenancy occurs, and
the rent under the tenancy were it to be set immediately after that change, would, by virtue of that change, be different to what was the market rent for the tenancy at the time of that last review or the commencement of the tenancy, as the case may be.

The rent pressure zone restrictions do not apply to the rent first set under the tenancy of—

a dwelling in a protected structure or proposed protected structure provided that there was no tenancy in respect of that dwelling during the previous year or
any other dwelling provided that no tenancy in respect of that dwelling subsisted during the previous two years

If the lease or tenancy agreement concerned does not provide for such a review or the tenancy concerned is an implied one, either party may require a review of the rent under the tenancy to be carried out and a new rent, if appropriate, set on foot of that review.

Substantial Change

A substantial change in the nature of the accommodation shall be regarded as taking place only where there is a permanent extension that increases the floor area by at least 25% and an improvement in the BER rating by seven building energy rating units

There is also substantial change where any three of the following takes place

the internal layout is permanently altered
the dwelling is adapted to provide for access and use by a disabled person
there is a permanent increase in the number of rooms
BER D1 or lower is increased by not less than three BER units
BER C3 or higher is increased by not less than two BER units

The works must not be carried out merely to bring the house or unit to the prescribed minimum standards.

Where, in setting, the rent under the tenancy of a dwelling in a rent pressure zone, a landlord seeks to rely on the above provisions regarding improvement et cetera, the landlord shall—

serve a notice in the prescribed form together with all relevant supporting information on the Board setting out the reasons why, in the landlord’s opinion, the exception applies
specify in the notice the rent set under the tenancy of the dwelling and the amount of rent last set under the tenancy of the dwelling, and
serve the notice and information within 1 month from the setting of the rent under the tenancy of the dwelling.”

Frequency of Review

In the case of a new tenancy in a Rent Pressure Zone, the landlord can review the rent once every 12 months. The landlord must give the tenant the following information, in writing, at the start of the tenancy:

The amount of rent that was last set for the property
The date the rent was last set for the property
A statement as to how the rent set for the property has been calculated, having regard to the Rent Pressure Zone calculator
The rent being set should not be more than local market rents for similar properties

If a tenancy is already in existence when an area becomes a Rent Pressure Zone, the first rent review can take place 24 months after either of the following:

The start of the tenancy
The date the tenant was notified in writing of the last review

Subsequent rent reviews can take place after 12 months and must adhere to the RPZ rules.

Notice of Review

Once the required period (12 or 24 months) has elapsed, the landlord can issue a notice of rent review. The notice of the amount of the proposed new rent and the date from which it is to take effect must be given

The landlords must use the RTB’s Notice of Rent Review Form when issuing a rent review. They must give at least 90 days’ notice of a rent review. The new rent cannot apply until 90 days after the notice has been issued.

The landlord must also notify the RTB of the revised rent so that it can update the registration details of the tenancy.

Designated Rent Pressure Zones

A ‘ rent pressure zone ’ means an area prescribed by the Minister by order as a rent pressure zone or an area deemed to be so under the Act.

As of September 2017, the rent pressure zones were

Cobh
Maynooth
Ballincollig – Carrigaline, Co. Cork
Galway City Central
Galway City East
Galway City West
Celbridge – Leixlip, Co. Kildare
Naas, Co. Kildare
Kildare – Newbridge
Ashbourne, Co. Meath
Laytown – Bettystown, Co. Meath
Rathoath, Co. Meath
Bray, Co. Wicklow
Wicklow, Co. Wicklow
Dublin City Council
South Dublin County Council
Dun Laoghaire/ Rathdown County Council
Fingal County Council
Cork City Council
Greystones, Wicklow County Council
Drogheda, Louth County Council

The following Local Electoral Areas have been added

28 March 2019

Limerick City East LEA, Co. Limerick
Navan LEA, Co. Meath

2nd July 2019

Fermoy LEA, Co. Cork
Midleton LEA, Co. Cork
Athenry-Oranmore LEA, Co. Galway
Gort-Kinvara LEA, Co. Galway
Kilkenny LEA, Co. Kilkenny
Graiguecullen-Portarlington LEA, Co. Laois
Portlaoise LEA, Co. Laois
Limerick City North LEA, Co. Limerick
Limerick City West LEA, Co. Limerick
Ardee LEA, Co. Louth
Dundalk-Carlingford LEA, Co. Louth
Dundalk South LEA, Co. Louth
Kells LEA, Co. Meath
Trim LEA, Co. Meath
Waterford City East LEA, Co. Waterford
Waterford City South LEA, Co. Waterford
Athlone LEA, Co. Westmeath
Gorey LEA, Co. Wexford
Arklow LEA, Co. Wicklow

26th September 2019

Carlow LEA, Co. Carlow
Macroom LEA, Co. Cork

18th December 2019

Cobh LEA, Co. Cork
Piltown LEA, Co. Kilkenny
Sligo-Strandhill LEA, Co. Sligo
Baltinglass LEA, Co. Wicklow

22nd April 2020

Mallow LEA, Co. Cork
Killarney LEA, Co. Kerry
Athy LEA, Co. Kildare
Tullamore LEA, Co. Offaly
Mullingar LEA, Co. Westmeath

16th July 2020

Bandon-Kinsale LEA, Co. Cork

29th September 2020

Kildare County Council

Designation

Residential Tenancies Act 2004 (Commencement) Order 2004, S.I. No. 505 of 2004
Residential Tenancies Act 2004 (Establishment Day) Order 2004, S.I. No. 525 of 2004
Residential Tenancies Act 2004 (Section 202) Regulations 2004, S.I. No. 649 of 2004
Residential Tenancies Act 2004 (Commencement) (No. 2) Order 2004, S.I. No. 750 of 2004
Private Residential Tenancies Board Superannuation Scheme 2011, S.I. No. 625 of 2011
Residential Tenancies Act 2004 (Prescribed Form) Regulations 2016, S.I. No. 150 of 2016
Residential Tenancies (Amendment) Act 2015 (Commencement of Certain Provisions) (No. 3) Order 2016, S.I. No. 216 of 2016
Residential Tenancies Act 2004 (Prescribed Form) (No. 2) Regulations 2016, S.I. No. 217 of 2016
Rent Pressure Zone (Local Electoral Area of Ballincollig-Carrigaline) Order 2017, S.I. No. 18 of 2017
Rent Pressure Zone (Local Electoral Area of Galway City West) Order 2017, S.I. No. 19 of 2017
Rent Pressure Zone (Electoral Area of Naas) Order 2017, S.I. No. 20 of 2017
Rent Pressure Zone (Local Electoral Area of Galway City Central) Order 2017, S.I. No. 21 of 2017
Rent Pressure Zone (Local Electoral Area of Celbridge-Leixlip) Order 2017, S.I. No. 22 of 2017
Rent Pressure Zone (Local Electoral Area of Galway City East) Order 2017, S.I. No. 23 of 2017
Rent Pressure Zone (Local Electoral Area of Wicklow) Order 2017, S.I. No. 24 of 2017
Rent Pressure Zone (Local Electoral Area of Bray) Order 2017, S.I. No. 25 of 2017
Rent Pressure Zone (Local Electoral Area of Ratoath) Order 2017, S.I. No. 26 of 2017
Rent Pressure Zone (Local Electoral Area of Ashbourne) Order 2017, S.I. No. 27 of 2017
Rent Pressure Zone (Local Electoral Area of Laytown-Bettystown) Order 2017, S.I. No. 28 of 2017
Rent Pressure Zone (Local Electoral Area of Kildare-Newbridge) Order 2017, S.I. No. 29 of 2017
Rent Pressure Zone (Local Electoral Area of Maynooth) Order 2017, S.I. No. 109 of 2017
Rent Pressure Zone (Local Electoral Area of Cobh) Order 2017, S.I. No. 113 of 2017
Rent Pressure Zone (Local Electoral Area of Greystones) Order 2017, S.I. No. 401 of 2017
Rent Pressure Zone (Local Electoral Area of Drogheda) Order 2017, S.I. No. 402 of 2017
Rent Pressure Zone (Local Electoral Area Of Limerick City East) Order 2019, S.I. No. 121 of 2019
Rent Pressure Zone (Local Electoral Area Of Limerick City East) Order 2019, S.I. No. 122 of 2019
Residential Tenancies Act 2004 (Prescribed Form)(No. 2) Regulations 2019, S.I. No. 353 of 2019
Rent Pressure Zone (Local Electoral Area of Carlow) Order 2019, S.I. No. 478 of 2019
Rent Pressure Zone (Local Electoral Area of Macroom) Order 2019, S.I. No. 479 of 2019
Residential Tenancies Act 2004 (Prescribed Form) Regulations 2019, S.I. No. 287 of 2019
Rent Pressure Zone (Local Electoral Area of Arklow) Order 2019, S.I. No. 309 of 2019
Rent Pressure Zone (Local Electoral Area of Ardee) Order 2019, S.I. No. 308 of 2019
Rent Pressure Zone (Local Electoral Area of Gort – Kinvara) Order 2019, S.I. No. 316 of 2019
Rent Pressure Zone (Local Electoral Area of Graiguecullen – Portarlington) Order 2019, S.I. No. 317 of 2019
Rent Pressure Zone (Local Electoral Area of Kells) Order 2019, S.I. No. 318 of 2019
Rent Pressure Zone (Local Electoral Area of Kilkenny) Order 2019, S.I. No. 319 of 2019
Rent Pressure Zone (Local Electoral Area of Dundalk – Carlingford) Order 2019, S.I. No. 312 of 2019
Rent Pressure Zone (Local Electoral Area of Dundalk South) Order 2019, S.I. No. 313 of 2019
Rent Pressure Zone (Local Electoral Area of Fermoy) Order 2019, S.I. No. 314 of 2019
Rent Pressure Zone (Local Electoral Area of Gorey) Order 2019, S.I. No. 315 of 2019
Rent Pressure Zone (Local Electoral Area of Athenry – Oranmore) Order 2019, S.I. No. 310 of 2019
Rent Pressure Zone (Local Electoral Area of Athlone) Order 2019, S.I. No. 311 of 2019
Rent Pressure Zone (Local Electoral Area of Portlaoise) Order 2019, S.I. No. 323 of 2019
Rent Pressure Zone (Local Electoral Area of Trim) Order 2019, S.I. No. 324 of 2019
Rent Pressure Zone (Local Electoral Area of Waterford City East) Order 2019, S.I. No. 325 of 2019
Rent Pressure Zone (Local Electoral Area of Waterford City South) Order 2019, S.I. No. 326 of 2019
Rent Pressure Zone (Local Electoral Area of Limerick City North) Order 2019, S.I. No. 320 of 2019
Rent Pressure Zone (Local Electoral Area of Limerick City West) Order 2019, S.I. No. 321 of 2019
Rent Pressure Zone (Local Electoral Area of Midleton) Order 2019, S.I. No. 322 of 2019
Rent Pressure Zone (Local Electoral Area of Piltown) Order 2019, S.I. No. 646 of 2019
Rent Pressure Zone (Local Electoral Area of Strandhill) Order 2019, S.I. No. 647 of 2019
Rent Pressure Zone (Local Electoral Area of Baltinglass) Order 2019, S.I. No. 644 of 2019
Rent Pressure Zone (Local Electoral Area of Cobh) Order 2019, S.I. No. 645 of 2019
Rent Pressure Zone (Local Electoral Area of Tullamore) Order 2020, S.I. No. 140 of 2020
Rent Pressure Zone (Local Electoral Area of Athy) Order 2020, S.I. No. 136 of 2020
Rent Pressure Zone (Local Electoral Area of Killarney) Order 2020, S.I. No. 137 of 2020
Rent Pressure Zone (Local Electoral Area of Mallow) Order 2020, S.I. No. 138 of 2020
Rent Pressure Zone (Local Electoral Area of Mullingar) Order 2020, S.I. No. 139 of 2020
Rent Pressure Zone (Local Electoral Area of Bandon – Kinsale) Order 2020, S.I. No. 247 of 2020
Rent Pressure Zone (Administrative Area of Kildare County Council) Order 2020, S.I. No. 380 of 2020
Residential Tenancies Act 2004 (Prescribed Form) Regulations 2021, S.I. No. 362 of 2021
Residential Tenancies Act 2004 (Prescribed Form) (No. 2) Regulations 2021, S.I. No. 723 of 2021
Residential Tenancies Act 2004 (Prescribed Form) Regulations 2022, S.I. No. 152 of 2022
Residential Tenancies Act 2004 (Prescribed Form) (No. 2) Regulations 2022, S.I. No. 341 of 2022

Rent Pressure Zones