Landlords to be restricted to rent rises every 2 years

Landlords are to only be allowed to increase their residential tenants’ rents every two years rather than annually as is presently the case.

Details of the deal between Finance Minister Michael Noonan and Environment Minister Alan Kelly emerged late last night. It is set to come before Cabinet next week.

It is believed the measure will be kept in place for the next four years with annual rent reviews likely to return after that.

If the measure is backed by Cabinet, it would appear to bring an end to Mr Kelly’s plan to link rent prices to the consumer price index.

Mr Kelly had said rent certainty was key to “resolving family homelessness”. It had initially been expected that would have been announced in Budget 2016 but it is understood Michael Noonan effectively blocked the proposal as it may damage the market and see landlords leave the sector.

The apparent tensions between the two ministers has continued since the budget announcement.