10 June 2025
RPZ Government Announcement Welcomed By IPAV
The Institute of Professional Auctioneers & Valuers this evening (Tuesday) welcomed the new Rent Pressure Zone measures announcement by Minister Browne today saying that while some measures may need to be further examined the ability to reset rents to market value for new tenancies, and at the end of each six-year tenancy would assist private landlords stay in the market or re-engage in it.
Pat Davitt, IPAV’s Chief Executive said: “Ultimately that will make the proposition more viable than heretofore and it will help the supply of rental properties.
“Today’s announcement does help both landlords and tenants,” he said.
“However, those landlords who did not raise their rents at the introduction of the RPZs in 2016 are now on very low, unsustainable rents and will not be able to apply increases beyond the 2% cap unless a tenant leaves the property of their own volition.”
Mr Davitt said the move by the Minister to apply the Consumer Price Index to rent increases that apply rather than the Harmonised Indices of Consumer Prices (HICP) was also to be welcomed. The latter is based on a measure that compares prices across the EU and excludes mortgage interest payments and other items such as house insurance, Local Property Tax and building materials, all of which impact landlord costs.
He also encouraged the Government to consider in the forthcoming budget the re-introduction of a Section 23 type initiative to assist SME builders and developers to incentivise new building throughout the country.
“Institutional investors are largely confined to the large urban areas. SME builders need to be incentivised to ensure construction gets going throughout the country.
“The previous Section 23 initiative stimulated building at a time when it was badly needed. It was expanded far beyond what it should have been but that error shouldn’t damn forever what was an inherently successful tax measure,” he said.
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