Minister for Housing James Browne has said measures agreed by Cabinet this morning are aimed at protecting renters while also trying to activate home building in the country.
Mr Browne insisted that the Government was doubling down on renters' rights, however, Opposition parties claimed the changes would not assure worried renters.
Speaking at a press conference in Government Buildings, Mr Browne said it will be some years before there are any new apartment properties that come under new rental rules based on inflation.
He added that the new rules only apply to apartments, and only those that are commenced from today's date, which is the date of the Government decision.
Watch: New rental control measures aim to provide 'certainty, clarity and stability'
He confirmed that the measures will come into effect on 1 March 2026, immediately following the expiration of Rent Pressure Zones and that legislation will be introduced later this year to give effect to the measures.
"We aim to simplify the operation of rent controls and to ensure any rent increases across the country will be restricted in line with inflation.
"To protect tenants at times of high inflation, we will retain the cap for permissible rent inflation at 2% with limited exceptions.
"We will allow rents for new tenancies created on or after 1 March 2026 to be set at market value but in return for far greater security of tenancies for tenants to six-year tenancies of minimum duration," he said.
Mr Browne said the move to a national rent control recognises "the reality that tenants across the country face difficulty paying their rent".
He said the Government "wants to be clear" that it recognises that rents are currently very high.
"We also want to be clear that we simply need new investment in rental accommodation, particularly apartments for rent, that is why we are allowing the rent for new apartments to be linked to the CPI even when inflation exceeds 2%," he added.
Plan 'not to be seen as a silver bullet'
Mr Browne said the national rent control plan is not to be seen as a "silver bullet", but to strike a balance and bring "certainty and clarity" to renters and landlords.
He said he accepted that there had to be a "very fine balance" struck between attracting investment and the fair treatment of tenants.
"The changes today will have a significant impact on our rental sector, making much-needed investment more attractive, whilst strengthening the protections and providing greater certainty for renters.
"We aim for tenancy protections that suit both tenants and landlords," he said.
However, he said these measures were "just one strand" of a suite of measures which includes planning extensions, planning exemptions and a "tranche of further key decisions" that will be made in the coming weeks.
He said that landlords will only be allowed to reset rent for new tenancies and between future tenancies.
However, rent resets will not be allowed following a no-fault eviction, Mr Browne said.
"Rent resetting will only be allowed where a tenant leaves a tenancy of their own volition or have reached their tenant obligations, or the dwelling is no longer suitable to the accommodation needs of the tenant household," he said.
Mr Browne said resetting of rents will not be allowed during any tenancy created on or before 28 February 2026 due to the uncertainty it would cause to tenants with existing tenancies.
From 1 March next year, a larger landlord, that is one with four or more tenancies, cannot end a tenancy created on or after that date via a no-fault eviction. It will be for a non-limited duration.
Mr Browne said that change was an attempt to make the building of new apartments across the country more attractive.
No-fault evictions will be banned for renters who are in a home that is rented out by a landlord with four properties or more. While those renting from smaller landlords will have security of tenure for a six-year period.
However, landlords will be able to set rents to market rates in between tenancies.
Social Democrats TD Rory Hearne said the no-fault eviction ban will not apply to at least half of all tenancies.
Meanwhile, Labour's housing spokesperson Conor Sheehan claimed there are more holes in the Government's policy that there were on the Titanic.
Taoiseach defends lifting ban on no-fault evictions
Taoiseach Micheál Martin said that the previous government was not wrong to lift the ban on no-fault evictions.
Speaking before Cabinet, Mr Martin said the previous ban on no-fault evictions was "total" which, he said, "was not sustainable either".
He said the previous ban was a "Covid measure" and that those who opposed lifting it "were not correct".
Mr Martin said that there were "constitutional constraints" and that it was "about balance".
Mr Martin said what he described as "significant extra protections that will be put into the new framework for tenants" would "surprise people".
He said that these included the new measures around no fault evictions and that "existing tenants would not see their rent go beyond the 2% Rent Pressure Zone cap."
However, Mr Martin said Ireland needs additional housing supply.
"We need more people building more apartments, and we need investment to come in to supplement what is unprecedented State investment in housing.
"The State is the main investor in housing at the moment, that's not sustainable into the medium term, and so measures have to be taken to bring private sector investment in," Mr Martin said.
Opportunity for landlords to increase rents - McDonald
Sinn Féin leader Mary Lou McDonald said the Government's new rent plan has created an opportunity for tens of thousands of landlords to jack up rents even more.
Students will be among the first hit by the changes and rent increases should be banned rather than facilitated by the Government, she told the Dáil.
Ms McDonald said that allowing landlords to set rents to market rates is effectively the death knell for Rent Pressure Zones and represents a sweetheart deal for investor funds.
"What you're about is about screwing renters," she said.
The Taoiseach said the reforms announced today will strengthen the rights of tenants.
He said the changes were informed by the Housing Commission report, which was endorsed by Sinn Féin.
Mr Martin described the measures as strong in terms of rent protection and ones that will incentivise investment.
About €20 billion is required to build 50,000 home every year and no one can seriously suggest that the State can "pony up" that money, he said.
'Screeching u-turn' on rent pressure zones - Labour
The leader of the Labour Party has dubbed the Taoiseach as "the grand old Duke of Cork" for having performed "a screeching u-turn" on RPZs.
Ivana Bacik said that the Government had been indicating RPZs were to be abolished, and now the entire country is being designated as an RPZ.
"You led your men up to the top of the hill before marching them all the way back down again."
She claimed that the Government is generating uncertainty among investors with "extremely vague and opaque policy" offerings, and pointed to "an ominous slowdown in construction".
Ms Bacik asked what safeguards are being put in place to protect renters who, she said, would be evicted.
Micheál Martin rejected the claim that he had performed a U-turn.
He responded that the Government is providing "a national framework of protection" which means "existing tenants will keep the RPZ at a 2%", while "new tenancies - if we get new builds which is what we want to do - will be capped at CPI".
He added that the economy needs more building and that requires certainty, "and that it what this package is".
"Renters are fearful - they are desperately fearful," Ms Bacik replied.
Mr Martin said that "practical reality" is needed, and claimed that the Government has achieved that in these measures.
Young renters give their reaction
Young people have given a cautious welcome to the details of the national rent controls.
Kate Ryan from Sligo who recently completed her studies in Dublin said anything that will help young people "will be great" but most of her friends are "emigrating or planning to emigrate because it's impossible to live".
Luke Dight from Tipperary who is renting in Sligo said supply needs to increase.
"When I applied for the housing; I was the first person to apply and my landlord had about 250 phone call just for the one apartment, a two-bed place. I was lucky I got it".
Aontas na Mac Léinn in Éirinn (AMLÉ), the national student union, has called on the Residential Tenancies Board (RTB) to be given "real enforcement powers".
It said the student rental market remains subjected to "exploitative living conditions and substandard housing".
AMLÉ President Chris Clifford said that while stronger penalties for non-compliance with rent controls may deter some bad practices, students are continuing to struggle with "unaffordable rents, a lack of purpose-built student accommodation, and exploitative living conditions".
One of the main estate agents handling residential, commercial and agricultural rentals in Co Sligo has raised concerns about some elements of the proposals.
Rodger Mc Carrick of REA Mc Carrick & Sons, who represents mainly small landlords, said the main problem he has identified with the new proposals is that landlords will not be allowed to raise the rent if they evict tenants.
"This is totally unfair to small landlords, who already are renting well below market rents," Mr Mc Carrick said.
