Law covering private rented sector comes into force

Tenants in Dublin and Cork, and in the commuter counties, will be the biggest winners as new legislation on the private rented sector comes into force on Friday night.

Since last night landlords will be allowed to increased rents only every two years, for the next four years.

This will mean savings, according to the Department of the Environment of up to €1,656 a year for some tenants.

President Michael D Higgins signed the Residential Tenancies Act last night, giving effect to a measures to stabilise the private rental market, announced by Minister for the Environment Alan Kelly last month.

Three priority measures are in effect immediately, with the remainder of the Act requiring formal commencement by the Minister by January 1st.

From now landlords may only increased rent every two years. This means any tenant who had had a rent increase this year will not face another until 2017.

Landlords must give a minimum of 90 days notice of any rent increase. It had been 28 days. There are also extended periods of notice for the termination of any lease.

Notice periods

Depending on how long a tenant has been in a property, the minimum notice period had been between 28 days and 112 days. Now the notice periods have been extended to between 28 days for tenancies of six months or shorter, and 224 days for tenancies of eight years or more.

The department, relying on data from the property website Daft, says projected annual rent increases for next year will not now happen.

These range from annual increases of €1,656 per year in Dublin city centre, €1,581 in west Dublin, €1,569 in north Dublin, €1,539 in Cork city and €1,529 in Meath.

Lower savings will be achieved by tenants in Donegal (€378) and Wexford (€390).

Welcoming the new legal protections for tenants, Mr Kelly said the Act was among the most significant reforms of the private rental sector ever.

“This will save families in excess of €1,000 next year. It is important that young couples and people on low incomes will be able to avail of this break. One in five families rent. Future rent increases will require 90 days notification and there is much greater security of tenure for tenants.

"Irish people are going to spend longer in rental accommodation with the new central bank rules and the legislation needs to match the current nature of the housing market in Ireland. "