Alan Kelly’s plan to ‘cap’ rent rises will backfire, say landlords

Environment Minister Alan Kelly’s plan to cap surging rent rises will create a “black market” economy where would-be renters will be effectively forced to make “under the counter” payments to secure homes, landlords have warned.

The Residential Landlords Association claimed the “populist” move will backfire on Government after it emerged the long-awaited policy could be signed into law as early as next month.

Under the “rent certainty” measure, which Mr Kelly has repeatedly insisted is not a potentially unconstitutional rent “cap”, landlords will be prevented from increasing the cost of their units for four years unless there are clear reasons such as improvements to the home for doing so.