Decision on Cork rent pressure zones due next week, says Taoiseach

A Government decision on rent pressure zones is expected within the next week, the Taoiseach has said.

The Coalition has been criticised amid concern it will scrap the rent protections at the end of the year.

Rent pressure zones (RPZs) were introduced in 2016 to help control spiralling increases for tenants. The regulations, which apply to certain designated areas of high demand, are due to expire on December 31. Maximum market rent increases in RPZs are tied to either a cap of 2% or inflation, whichever is lower.

The Government is yet to formally announce details of an alternative scheme to replace RPZs.

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It comes after the publication of the housing commission report last year, which said the Government should regulate market rents fairly and effectively by reforming current regulations and establishing “reference rents”. This would replace RPZs with a system that pegs rent to local dwellings of a similar quality.

Asked yesterday when a decision on the future of RPZs would be made, Micheál Martin told reporters: “I would expect sometime in the next week.”

The Taoiseach said the decision will be part of a number of steps towards increasing housing supply, including attracting institutional investors to the sector.

“There’ll be further measures taken next week in relation to housing,” he said.

“It’s not any one measure that is a silver bullet. It’s the cumulative impact of all of them that will lead to an increase and an acceleration of timelines around getting housing units complete.”