Rent pressure zone caps 'showing benefit' to tenants across Ireland, watchdog says

RTB is to begin an investigation into persistently high rents in Galway, which has had high growth for eight consecutive quarters.

The head of Ireland’s rental watchdog has said its regulation of rent controls — which may be scrapped by the Government at the end of the year — are “showing benefits” for tenants across the country.

She said she has written to the Housing Agency to express the Residential Tenancies Board’s (RTB) view on rent pressure zones, as that agency compiled a report making recommendations on the future of the controls to minister for housing James Browne.

Speaking at the RTB’s quarterly update, director Rosemary Steen also said it would begin an investigation into persistently high rents in Galway, which has had high growth for eight consecutive quarters, as she urged any renters there facing a “situation that’s concerning them” to make contact.

“There are other counties that we are also concerned about, but in Galway this quarter we’re announcing that the average rent there has exceeded that in Cork, [and] it requires particular attention from us,” she said.

In its latest update, the RTB said the standardised average rent for new tenancies in Ireland rose 5.5% last year, to €1,680, by the end of the last quarter.

Renters entering new tenancies continue to fork out more than those in existing tenancies, according to the RTB, as the amount existing tenants pay rose 4.6% to €1,440.

This disparity between new and existing rents could widen if the rent pressure zone cap of a maximum of 2% increase per year were to be scrapped, but Ms Steen maintained that policy was a “matter for the minister”.

“The minister will be mindful of the fact that any change in rent controls has implications for both landlords and tenants,” she said. “We simply administer whatever rules the minister chooses to put in place.

“In terms of the data, it’s our duty to make sure policy decisions are informed by data.” 

Also speaking at the event, Economic and Social Research Institute researcher Rachel Slaymaker said there had been a “clear moderation” in rental inflation throughout 2024, with rent hikes not as high as they had previously been.

She said a “rapid growth” of the cost of new rentals in Limerick had seen it also overtake Cork in this area, while rental growth in areas such as Kerry and Tipperary were “persistently high”.

Meanwhile, the number of registered landlords and tenancy numbers rose in the first quarter of 2025 year-on-year.

Since the third quarter of 2023, the number of landlords registered with the RTB has risen by over 5,000, with landlords renting out one property accounting for two-thirds of all landlords.

The RTB also detailed significant sanctions meted out to landlords who have breached their obligations under the legislation.

In all, details of 36 sanctions with fines totally €102,490 levelled against landlords were published by the regulator on Thursday. Most of the sanctions were for breaches of rent pressure zone legislation.

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Ms Steen said a disproportionate number were in Galway, while the highest sanction of €22,000 was dished out to Sweet Home Accommodation Ltd relating to a number of properties in Dublin.

Sinn Féin TD for Galway West Mairéad Farrell said the launch of an investigation into rents in Galway would not be surprising to anyone who is renting there.

“My office is constantly dealing with such issues,” she said. “I’ve lost count of the amount of times people have broken down in my office in tears because of poor practices by landlords.”