Rent Pressure Zones
Does the measure apply to new tenancies?
Yes. The measure applies to properties. This means that it will apply when rents are set at the start of a tenancy and when rents are set in a rent review during an ongoing tenancy.
Are all rental properties covered?
No. Properties that are new to the rental market – i.e. properties that have not been let at any time in the previous two years – and properties which have been substantially refurbished may be exempted from the measure.
How long will the measure apply for?
An area may be designated as a Rent Pressure Zone for a maximum of three years. This means that the designation will lapse and the Rent Predictability Measure will cease to apply three years after area was designated. The designation of an area may be lifted earlier than this if the pressures on rent are deemed to have eased.
Who decides to lift the measure?
The Housing Agency, in consultation with the local authority, will assess whether the rental market conditions in the area concerned have stabilised and whether the balance between supply and demand has improved. Where the agency finds that these changes have occurred, it may recommend to the Minister that the designation of a particular area be lifted. The Minister will then make an order lifting the designation of the area as a Rent Pressure Zone.
Can the designation as a Rent Pressure Zone be extended beyond three years?
No. The designation lapses after three years.
What happens after the designation as a Rent Pressure Zone expires or is lifted?
Once the area ceases to be designated as a Rent Pressure Zone, the rent review process will revert to normal. However, the minimum period of one year between rent reviews will continue apply.
Click here for a map of the existing and newly-designated Rent Pressure Zones.
“An area may be designated as a Rent Pressure Zone for a max of three years. The designation will lapse and the Rent Predictability Measure will cease to apply three years after area was designated.”