Residential Rental Sector Reforms: RPZs extended nationwide
Legislation extending rent pressure zones (RPZs) nationwide with effect from 20 June 2025 has been fast-tracked and signed into law.
The Residential Tenancies (Amendment) Act 2025 is the first piece of legislation to implement the reforms announced by the Government on 10 June 2025.
The geographical extension of RPZs ensures that increases in rents or fees paid for all residential tenancies and licences of student specific accommodation in the State that are regulated by the Residential Tenancies Acts are now all uniformly subject to an annual 2% cap (or, if lower, the inflation rate recorded by the Harmonised Index of Consumer Prices (HICP)).
It also has the effect of extending nationwide the application of planning legislation regulating short term lettings. Under planning legislation, the use of a dwelling or part of a dwelling in an RPZ for lettings of 14 days or less (being “short term lettings”) is a material change in use, so that (unless exemptions apply) planning permission would be required to permit that change of use. Short term lettings are exempted (i) where a landlord rents up to four bedrooms (to a max of four people per room) in their principal private residence (PPR); or (ii) where a landlord rents their PPR for less than 90 days in a year. It follows from this that from 20 June 2025 use of any dwelling in the State for short term lettings without planning permission, which is not exempted, would constitute unauthorised development and could lead to enforcement action on the part of the planning authority.
The designation of the entire country as an RPZ will remain in place until 28 February 2026, when it is likely to be extended for a further period in conjunction with the implementation of the balance of the reforms announced by the Government on 10 June and expected to take effect on 1 March 2026. Draft legislation to implement those reforms is awaited, and will be critical in clarifying their scope and impact on the residential rental sector.
For further information on the full package of reforms announced on 10 June, see our client briefing here.
This document has been prepared by McCann FitzGerald LLP for general guidance only and should not be regarded as a substitute for professional advice. Such advice should always be taken before acting on any of the matters discussed.
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