Plan to lift 2% pressure zones rent cap is a blow to tenants

The Government is planning to remove the 2% rental increase cap in Rent Pressure Zones and allow accommodation costs to increase in line with inflation.
The move is likely to see landlords increase rents to what the market can stand, leaving many renters unable to save for a deposit to buy their own property.
However, Justice Minister Jim O'Callaghan told RTÉ: 'If we do nothing, the Rent Pressure Zone legislation is going to expire at the end of December this year, so something has to be done and obviously we've also got to stimulate private sector investment because this is an issue that requires decision by Government.'
The new proposals are due before Cabinet tomorrow. Justice Minister Jim O'Callaghan. Pic: Leah Farrell/RollingNews.ie
He was responding to comments made by Mark McCaffrey of the homelessness charity Threshold who said: 'This [proposal] will push people into homelessness.'
The minister, in response, said: 'I can't comment on the memo that's going to Government. I haven't seen it.
'I would have thought from my knowledge of Cabinet colleagues and what's in the Programme for Government that renters will be central to the decisions that are to be made on this by Government.'
It is understood a range of measures will be agreed by the Government, aimed at giving financially stretched renters a minimum level of occupier security.
The new measures will result in a package for existing renters that will amount to no change if they stay in their current tenancy, it is believed.
However, when a property has a new tenant, a landlord can reset the rent at the current market rate but increases after that would be capped at the existing 2% rate. It is understood a range of measures will be agreed by the Government, aimed at giving financially stretched renters a minimum level of occupier security. Pic: Shutterstock
There will also be protections for new renters under legislation expected in the coming weeks, it is understood. It will provide security of tenure for a minimum of six years and the landlord can then reset the rent to the market rate.
It is being viewed as the ending of no-fault evictions for the first time in the State.
However, Social Democrats' housing spokesman Rory Hearne said: 'Removing the 2% rent cap means throwing 'generation rent' to vulture fund landlords to pay for Government housing failures.
'This Government is caving to corporate landlord lobbyists and choosing to throw renters to the wolves.'

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