Ireland’s housing crisis remains a pressing issue in 2025, with the government’s review of Rent Pressure Zones (RPZs) taking center stage. Taoiseach Micheál Martin’s announcement to reassess RPZ legislation, which caps rent increases in high-demand areas, has sparked fierce debate among tenants, landlords, and policymakers. With rents rising 7.7% annually as of January 2025 and a persistent shortage of rental properties, the outcome of this review could redefine Ireland’s rental market. Here’s a deep dive into the issue, its implications, and what’s at stake.

What Are Rent Pressure Zones?

Introduced in 2016 under the Residential Tenancies Act, RPZs aim to protect tenants in areas where rents are high and rising rapidly, such as Dublin, Cork, and parts of Galway. The policy limits annual rent increases to 2% or the rate of general inflation (whichever is lower) for existing tenancies in designated zones. The goal was to ensure affordability, but critics argue that RPZs have reduced rental supply, driven up prices in unregulated areas, and deterred investment in housing.

Why the Review?

Taoiseach Micheál Martin, speaking at a housing conference in early 2025, highlighted the need for a “stable investment environment” to boost private sector involvement in housing construction (Irish Times, 2025). With Ireland falling short of its target to build 50,000 homes annually, Martin suggested that RPZs may be discouraging landlords and investors, contributing to a shrinking rental market. According to the Residential Tenancies Board, the number of private landlords has declined by 20% since 2016, with many citing low returns, high taxes, and regulatory burdens as reasons for exiting (RTB, 2024).

The Irish Property Owners Association (IPOA) has welcomed the review, arguing that RPZs have “devastated” the rental sector by making it unprofitable for landlords to maintain or invest in properties (IPOA, 2025). Economist Ronan Lyons from Trinity College Dublin supports this view, noting that RPZs have reduced rental supply by incentivising landlords to sell or switch to short-term lets like Airbnb, further tightening the market (Lyons, 2024).

The Tenant Perspective

Tenant advocacy groups, such as Threshold, warn that weakening or abolishing RPZs could exacerbate affordability issues for renters, particularly low- and middle-income households. Average rents in Dublin now exceed €2,200 per month, among the highest in Europe (Daft.ie, 2025). For many tenants, RPZs are a critical safeguard against unaffordable rent hikes that could lead to eviction or homelessness. Threshold has urged the government to prioritise tenant protections, citing the 60,000 households on social housing waiting lists as evidence of the crisis’s severity (Threshold, 2025).

The human toll is stark: renters report bidding wars, illegal rent demands, and overcrowding as they compete for scarce properties. Young people and those on fixed incomes are particularly vulnerable, with many forced to delay major life decisions like starting a family due to housing insecurity (Focus Ireland, 2024).

What’s Next?

The government’s review, expected to conclude by mid-2025, will consider alternatives to RPZs. One proposal is a “reference rent” system, where rents are tied to a property’s baseline value and adjusted incrementally, offering predictability for tenants and clarity for landlords (Department of Housing, 2025). Other suggestions include state-led construction to boost supply and tax incentives for institutional investors to develop large-scale rental projects, known as “build-to-rent” schemes.

However, any reform will face political challenges. The Fianna Fáil-Fine Gael coalition must navigate pressure from opposition parties like Sinn Féin, which advocate for stronger tenant protections, and business groups pushing for deregulation. With housing a top voter concern ahead of the next general election, the government’s decisions will have far-reaching consequences.

The Bigger Picture

The RPZ debate is part of a broader housing crisis driven by insufficient construction, high building costs, and planning delays. Ireland needs 50,000 new homes annually to meet demand, but only 32,000 were completed in 2024 (Central Statistics Office, 2024). Rising interest rates and inflation further complicate matters, squeezing developers and renters alike. Meanwhile, the social housing shortage leaves thousands in limbo, underscoring the need for a multifaceted approach.

What Can You Do?

Renters should stay informed about their rights through resources like Threshold (www.threshold.ie) or the Residential Tenancies Board (www.rtb.ie). Landlords can engage with the IPOA (www.ipoa.ie) to understand potential policy changes. Everyone can contact their local TDs to advocate for balanced housing reforms that address both supply and affordability.

The RPZ review is a pivotal moment for Ireland’s rental market. Will policymakers find a way to protect tenants while encouraging investment, or will the housing crisis deepen? As 2025 progresses, the nation awaits answers.

**Sources:**

- Central Statistics Office (2024). *Residential Dwelling Completions Q4 2024*. cso.ie.

- Daft.ie (2025). *Q1 2025 Rental Price Report*. daft.ie.

- Department of Housing (2025). *Rent Pressure Zone Review: Discussion Paper*. gov.ie.

- Focus Ireland (2024). *Annual Report on Homelessness and Housing Insecurity*. focusireland.ie.

- IPOA (2025). *Statement on RPZ Review*. ipoa.ie.

- Irish Times (2025). *Taoiseach Signals Major Review of Rent Controls*. irishtimes.com, January 15, 2025.

- Lyons, R. (2024). *The Impact of Rent Controls on Ireland’s Rental Market*. Trinity College Dublin.

- RTB (2024). *Annual Report 2024: Private Rental Sector Trends*. rtb.ie.

- Threshold (2025). *Response to RPZ Review Announcement*. threshold.ie.