The government introduced the concept of Rent Pressure Zones at the end of 2016 – (24th Dec) covering Dublin and Cork City. These zones have been expanded a few times since – with the latest additions made on July 2nd .
For an area to be designated a Rent Pressure Zone, the following measures used are:
- The average rent in the previous quarter must be above the average national rent in the quarter; and
- The annual rate of rent inflation in the area must have been 7% or more in four of the last six quarters.
From June 4th 2019, there are now three different standardized averages rents to be used when assessing an area:
Dublin areas will remain compared to the national standardized average rent.
The ‘Greater Dublin Area’ (Kildare, Meath, Wicklow) – excluding Dublin – will be compared to a new critera which is the national standardized average rent excluding Dublin.
The rest of the country – areas outside the ‘Greater Dublin Area’ and Dublin – will be compared to an outside GDA standardised average rent.
Rent Increase restrictions in Rent Pressure Zones.
If your rented property is located in a Rent Pressure Zone – then the rent cannot be increased by more than 4% a year. This restriction on rent increases will remain in place for a maximum period of three years and will apply both when rents are set at the start of a tenancy and when rents are reviewed during an ongoing tenancy.
In general, your landlord has the right to review the rent once every 2 years. (See more details about timespan between rent increases here) But in Rent Pressure Zones , under the new Rent Predictability Measure, annual rent increases will be allowed in future ( capped at 4% per year.)
This is the full list of areas covered by the Rent Pressure Zones as at July 8th 2019
Designated Rent Pressure Zones will remain in place until 31 December 2021.
- Dublin City Council
- South Dublin County Council
- Dun Laoghaire/Rathdown
- Fingal co Council
- Limerick City East
- Limerick City West
- Limerick City North
- Galway City Central
- Galway City East
- Galway City West
- Cork City
- Passage West
- Dundalk South,
- Waterford City South
- Waterford City East
Some examples of allowable rent increases in Rent Pressure Zones here