Many landlords are unhappy with the Government's new rent reforms because they will not get the “chance” to raise their tenants’ rents to market levels, the Irish Property Owners Association has said. 

Earlier this week, the Residential Tenancies Bill was signed into law by President Connolly and its provisions are due to come into effect on March 1st. 

From then onwards, there will be a nationwide Rent Pressure Zone, which will limit rent increases to a maximum of 2% a year. 

New build apartments and student accommodation will be exempt from the cap, while landlords will also be able to reset rents to market levels after a property becomes vacant. 

On The Hard Shoulder, Irish Property Owners Association spokesperson Mary Conway said the reforms “works very well if I was a landlord coming in for the very first time”. 

 However, she has concerns about the impact on existing landlords. 

“It doesn't meet [the needs] landlords who are on legacy low rents because they never have a chance to get the rent to market rent,” she argued. 

“And that's why most of those landlords are the people leaving the market.”

A landlord holding a bunch of keys. Picture by: Alamy.com.

Rent Pressure Zones were first introduced in 2016 in certain parts of the country as the economy recovered and rents surged. 

For landlords whose properties are located in Rent Pressure Zones, it means their tenants have been insulated to a degree from the impact of ever increasing rent levels. 

“Since 2016, people who are known as stayers, so people that have stayed in the same tenancy since 2016, their rents have risen by 22%,” Ms Conway said. 

“And that's on average, less than a third of the 68% increase seen in January. 

“So, new rents are going up, but there are a lot of landlords who are stuck on low legacy rents since 2015 because the tenants haven’t moved.”

Ms Conway added that the reforms are also very “Dublin focused” and do not reflect the needs of the housing market in rural areas.  

“Really, a lot of our members are in rural areas and if a landlord leaves a rural area, no investment company is building an apartment there, the approved housing bodies aren't so keen on building in rural areas,” she said. 

“So, while the debate is very Dublin focused all the time, we really do need to look outside Dublin on what's happening down the country.” 

Housing Minister James Browne said the Residential Tenancies Bill would “provide greater certainty and stability for tenants”. 

He also predicted it would “encourage an increase in the number of rental homes available, which we know is badly needed”.

Main image: A landlord holding a bunch of keys. Picture by: Alamy.com.