Hear hear, landlord - To sell or not to sell, that is the question

On the 10th of June 2025, the Government announced new measures to boost investment in rental housing, bring more stability to the housing market, and further strengthen protections for renters.

Here is what you can expect

1. New Legislation: Will aim to increase the number of rental homes and give tenants more security in their tenancies for all new tenancies starting after the 1st March 2026.

2. A national rent control system: Rent increases are to be tied to inflation; however, during times of high inflation, rent rises for most tenancies will be capped at 2% per year.

3. Smaller Landlords: Tenants renting from small Landlords (those with three or fewer properties) will be entitled to tenancies lasting at least six years. Landlords will also have more limited grounds for ending such tenancies, e.g. if they face hardship or need the home for a close family member, thus giving tenants stronger protections against eviction. Only at the end of the six-year tenancy will the Landlord be able to end the tenancy due to sale, renovation, or change of use.

4. Larger Landlords: Landlords who own four or more properties will no longer be able to carry out “no-fault evictions,” except in very limited circumstances. This change will not affect Landlords ending tenancies in instances where the tenant breaches their obligations or where the home no longer meets the tenant’s household needs.

5. Rent reset: All Landlords who have entered into new tenancy arrangements after March 1, 2026, will be entitled to raise the rent to market rates at the end of a six-year tenancy if the rent is currently below market value. However, they will not be able to charge above the market rates. If a “no-fault eviction” occurs, the rent reset will not apply, thereby preventing landlords from seeking to move tenants out so that they can charge a higher rent.

6. Tenants in place: All Landlords will remain entitled to sell a property with tenants in place at any time. However, there is concern in the market that selling a property with a tenant in place will reduce the property’s salability and value.

7. New Apartments: To encourage the construction of new apartments, any new developments will have rent increases capped at the Consumer Price Index. This means rents in these new apartments can only rise in line with inflation.

Notably, the rules governing the termination of existing tenancies will remain unchanged by these changes. If a tenant is already living in the property before 1 March, you retain the right to end the tenancy in accordance with the current provisions, even if the tenancy ends after that date.

Only new tenancies entered into on or after 1 March will be subject to the amended rules.

Overview of current provisions

• Current law does not distinguish between “small” and “large” landlords for tenant protection. This means that the same
  termination grounds, notice periods, security of tenure rules, and rent control obligations apply whether a landlord owns one property or many.
• There is no general prohibition on “no-fault evictions” under the current regime. Landlords may currently terminate a tenancy without the tenant’s fault on specified statutory grounds, including:
• Sale of the property
• Use by the Landlord or a close family member
• Substantial refurbishment
• Change of use

These grounds are available at any stage once security of tenure has arisen, provided that compliance with the notice requirements is met.

• Current rent increases for most residential tenancies in Ireland are controlled by the national Rent Pressure Zone (RPZ) regime, which means landlords may raise rent only once every 12 months and any increase must not exceed 2% per year or the rate of inflation, whichever is lower.

Afterthought

As the changes are expected to take effect on March 1, 2026, Landlords must review the viability of their investment in circumstances where they may need the property for family members may have to create a new letting under the new rules, or anticipate a sale of the property with a sitting tenant.

For further advice or if you wish to discuss any other legal area please contact reception@lynchsolicitors.ie or telephone 052 6124344.

The material contained in this blog is provided for general information purposes only and does not amount to legal or other professional advice. While every care has been taken in the preparation of the information, we advise you to seek specific advice from us about any legal decision or course of action.

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