Upcoming Changes to Residential Tenancies

The Residential Tenancies (Amendment) Act 2025 introduces significant changes to residential tenancy law from the 1st of March 2026.

Briefly, the changes will update rules for the private rented sector in relation to:

• Rent increases
• Security of tenure
• Ending a tenancy

Rent increases
Rent increases for all tenancies will be capped in line with the rate of general inflation or 2% per year, whichever is lower and will apply nationwide. This will no longer depend on whether your rented property is located in a Rent Pressure Zone.

For example, if a landlord reviews the rent every year and the rate of general inflation is 1.5%, then the rent can only be increased by a maximum of 1.5%. However, if the rate of general inflation is 3%, the rent can only be increased by a maximum of 2%.

Security of tenure
From 1 March 2026, all new tenancies will become tenancies of minimum duration (TMD). A tenancy of minimum duration will last for six years. It will then be renewed for a further six years and will continue in six-year cycles.
If a tenancy is created on or after 1 March 2026, it will automatically become a TMD when a tenant has rented the accommodation for 6 months without getting a valid notice of termination.

Ending a tenancy
If a tenancy is created on or after 1 March 2026, a landlord can only end a tenancy for certain reasons. These reasons will depend on:
– If the landlord is a ‘larger landlord’ or a ‘smaller landlord’
– How long the tenant has been living there (after 6 years, smaller landlords will be able to end a tenancy for more reasons)

The above is a very brief synopsis on the new rules. Further information can be found at:

• Rental Market Reforms in Ireland | Tenant Protections & Housing Legislation Updates
• Government Reforms to the Rental Sector – Starting 1 March 2026

Our view
The new rules will change the residential letting market in Ireland and will likely create a two-market system. Residential investment properties being sold based on a ‘yield’, with tenants in place (similar to commercial property and ‘tenants not affected’ on for sale signs), while other residential properties being sold as buyer dwelling and potentially being valued on a different basis.

Properties held in pensions will also be affected by the new legislation. Tenants will have more security in tenancies created from 1 March 2026, annual rent increases will be capped regardless of where the property is located, and residential properties held with pensions will not necessarily be sold ‘vacant possession’, i.e. during the term of a tenancy, a property will be sold with tenants in place and leases and their terms will pass from seller to buyer, essentially valuing a property on a yield basis.

Now is the time to update your clients on the upcoming changes to residential tenancies. The changes will be significant, and clients and their property agents need to be aware of the details of the legislation and their enhanced responsibilities and obligations.

Please note that the contents of this document do not constitute advice and are provided as a brief overview only of the proposed legislative changes, which may be subject to change prior to implementation.