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Parchment Winter 2025

Page 52

Landlord Alert: Major Rental Reforms Ahead The Government has outlined major reforms to Ireland’s rental laws, with new rules applying to tenancies starting on or after 1 March 2026. The proposals introduce separate regimes for small and large landlords, new six-year minimum-duration tenancies and updated rent-control measures. Colm Farrell explains the key changes and what to expect

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he Government recently published an update on the proposed changes to the residential landlord and tenant legislation. According to the update, the new policies will: “...strengthen rent controls and tenancy protections for new tenancies created from 1 March 2026.” However, while the Government update is helpful, we still have not seen the wording of the legislation. The Government has also recently published its updated housing plan entitled Delivering Homes, Building Communities 2025–2030, which will also have an impact on the sector. The stated purposes of the proposed changes are: 1. To protect tenants nationwide by ensuring all tenants benefit from rent protection. 2. To improve security of tenure for tenants by restricting “no fault evictions.” A no fault eviction is when a landlord ends a tenancy without the tenant having done anything wrong - that is, not due to rent arrears, anti-social behaviour or another breach of the lease. 3. To increase supply - Ireland is facing a shortage of rental homes, especially apartments. The reforms aim to encourage investment and development, which will encourage the building of new rental apartments. It will also slow down rent increases and moderate rent levels over time. 4. To create a fairer system which will better balance tenant protections with landlords’ needs. It remains to be seen whether these aims will be achieved. As with the existing residential landlord and tenant legislation, the changes will apply to private rented accommodation. These settings include: • HAP (Housing Assistance Payment) and RAS (Rental Accommodation Scheme)

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• Student-specific accommodation • Approved housing body (AHB) accommodation, and • Cost rental tenancies As is the current position, where a renter shares the property with the owner, the Residential Tenancies Act 2004 Act does not apply. That will not change under this new scheme. Distinction between large & small landlords The recent publication has confirmed the following, which we understood to be the position following the previous Government announcement on 10 June 2025: • A “Large” landlord is one with four or more tenancies, and • A “Small” landlord is one with three or fewer tenancies. Generally, there is a distinction between tenancy and dwelling and it should be remembered that, depending on the facts, it is possible to have more than one tenancy in a building. Different rules, particularly around terminations, will apply depending on which category a landlord falls within. Tenancies of minimum duration When the legislation in this area was originally introduced back in 2004, it created Part IV Tenancies, i.e. a recurring four-year cycle. This was subsequently revised to a six-year recurring cycle and more recently again to the concept of a tenancy of unlimited duration. However, the new legislation provides for tenancies of minimum duration, or “TMDs”, for tenancies commenced on or after 1 March 2026. The “old rules” will continue to apply to tenancies created before that date.


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