Renters ‘thrown to the wolves’ by new rules, Social Democrats say

Renters have been “thrown to the wolves” by Government, an opposition TD has said, after the latest data showed the annual rate of rental inflation for new tenancies increased to 9.1% in the first quarter of the year.

The coalition introduced sweeping changes in March which included provisions for landlords to reset rents to “market rates” for new tenancies outside of six-year rental agreements.

On Thursday, the Rental Tenancies Board (RTB) published its latest quarterly update which found the annual rate of rental inflation for new tenancies increased to 9.1% in Q1 – but remained lower for existing tenancies at 4.2%.

Eviction notices fell 42.% from “unusually high volumes” in Q1, which contained the periods immediately before and after the rental reforms, but still saw 4,031 tenants served with notices of termination between April and June.

Total registered tenancies across private, cost rental and Approved Housing Bodies increased by 4.3% annually and 0.8% from Q1 to 306,313.

The standardised average rent in Dublin has increased from 1,337 euro in Q1 2016 to 2,335 in Q1 2026.

All cities saw substantial growth in new tenancy rents – with the largest annual change in standardised average rent for new tenancies seen in Limerick City, which increased by 20.9%

ESRI research officer Rachel Slaymaker said: “It is too early to know how much of the increase in new tenancy rental inflation relates to an initial adjustment to new rent-setting rules which took effect in March as opposed to a more sustained change in market dynamics.”

Social Democrats housing spokesman Rory Hearne described the latest figures as “shocking” and “worse than expected”.

He added: “They fulfilled all the worst fears of what we had when the minister introduced measures in March, we said very clearly this was going to lead to huge rent increases.

“This is even worse than what we expected, and I think I’m calling on the minister straight out to reverse his decision.”

Minister for Housing James Browne said the figures show the rental sector “continues to stabilise” after the reforms, adding that “some level of movement” to “any tweak or policy change” was expected.

In a statement, he added: ” It’s important also to recognise that the average rent for existing tenants saw the lowest year-on-year increase since the RTB rent index began back in 2007.”

Mr Hearne said: “The analysis is that rents have increased nationally 9% year on year – for someone paying 20,000 a year on rent that’s around a 2,000 euro a year increase.

“These are massive, massive amounts of money that people – in the middle of a cost-of-living crisis – are going to be expected to pay.”

Mr Hearne said rents were already unaffordable, but had “now reached absolutely catastrophic levels”.

He said renters had been “thrown to the wolves” with the Government’s “nonsensical” approach, adding that he was concerned there would continue to be quarterly increases in rent as he called for a freeze on rates.

“We need something to stop the increase right now and then we need measures to actually go reduce rents – link rents to incomes.”

Sinn Féin housing spokesman Eoin Ó Broin also called for an immediate ban on rent increases and evictions – as he said there had been 4,000 eviction notices issued to tenants between April and June.

In a statement, he said: “A year after the Government announced changes to rent pressure zones, apartment design standards and massive VAT breaks for apartment developers, there is no sign that private rental supply is increasing. It has simply flatlined.

“While Government may claim that the latest RTB report suggests the private rental market is stabilising, the very opposite is the case.

“Rents are rising, evictions remain at unacceptably high levels. Meanwhile the supply of social and affordable housing continues to be way behind actual need.”

Asked to react to the figures, Taoiseach Micheál Martin told reporters at the Child Poverty Summit in Ballymun that the Government was “making progress” on housing supply and said the changes were necessary.

He said: “Supply is the fundamental challenge with cost of housing, both to purchase and to rent.”

He added: “We want to make more progress this year, and I think we will in terms of housing and apartment units constructed.

“We did have to make that change to the rental market. It has had potentially impacts.

“I haven’t had a chance to look at the figures, but clearly, for the long-term sustainability of the market, change had to occur, and that was recommended by the Housing Commission that we would change the existing system was uncertain and didn’t give certainty for investment into the future.”

Meanwhile, the RTB is to use new fixed payment notice powers including 200 euro fines to landlords over non-compliance with rent- setting rules from September 14.