Country's largest landlord says its rental income could surge by 25% thanks to Government rules

Ires Reit welcomed the change which will give landlords the ability to reset rents to market rates every six years, or if a tenant voluntarily ends a lease

For tenancies created after March 1, landlords will be permitted to hike rents to market rates. While in a lease, they will be restricted to yearly rent increases of 2% per year. File picture

The country's largest landlord has said its rental income could surge by 25%, thanks to new Government rules.

Ires Reit's prediction comes as even the Residential Tenancies Board (RTB) conceded that rents across the country will rise "in the short term" after the measures kick in on March 1.

The reforms will give landlords the ability to reset rents to market rates every six years, or if a tenant voluntarily ends the lease.

A briefing provided by Ires Reit to investors outlines that it believes its rental properties are being charged at 20% below market rent.

There has been an angry reaction from political opposition over the Government's rental changes, with Sinn Féin leader Mary Lou McDonald saying it paints a “frightening picture of the size of the rent increases coming down the tracks”.

The company’s briefing set out a total of 3,627 rental properties owned across the State, with the average monthly rent per unit being €1,852.

It also adds that it expects a 25% “potential rental income uplift with minimal added costs”, saying this will come through as tenancies turnover.

In the Dáil, Ms McDonald said the Government had been warned that reforms to rent laws would lead to rent hikes.

“Due to your decisions, the property funds are set for a bonanza,” Ms McDonald said.

Now we see the proof, straight from the horse’s mouth, the biggest corporate landlord in Ireland is saying out loud the very thing that you denied. That they will make a fortune from your legislation, all on the backs of renters.

In response, Taoiseach Micheál Martin said that renters in existing tenancies would only face 2% hikes each year, while saying there were further protections for renters in place with restrictions on no-fault evictions.

“We have over 513,000 people renting now, made up in terms of different categories, from public to the private sector, but over 290,000 people who are currently renting will not have their tenancies impacted,” Mr Martin said.

He said the Government wanted to bring more investment into the market, saying supply is key to “moderate rents into the medium term”.

It comes as the RTB’s director, Rosemary Steen, acknowledged that the legislation would lead to rent rises “at least in the short term”.

However, Ms Steen said it would require time to evaluate the impact of the changes.

“What I want to communicate today is it's not a free-for-all,” she said, noting that “there is clear guidance in regard to rent settings that apply”.

“We need to give the market a chance to respond. I do suspect it’ll take a number of months for the changes, in terms of their impact, to be seen,” Ms Steen said.

For tenancies created after March 1, landlords will be permitted to hike rents to market rates. While in a lease, they will be restricted to yearly rent increases of 2% per year.

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However, this 2% rule will not apply for new build apartments, with landlords permitted to increase rents in line with the Consumer Price Index instead.

Ires Reit also told investors that, due to the exemption of new-build apartments from the 2% rule, building them would be incentivised and there would be “opportunities for growth”.

Ires Reit welcomed the change in rental rules, with chief executive Eddie Byrne saying the improving regulatory backdrop means it will enter 2026 with “strong momentum”.

“We are now actively pursuing reinvestment opportunities to enhance the portfolio by investing in higher quality and higher yielding assets,” he added.