The Minister for Housing Daragh O Brien will bring legislation to Cabinet tomorrow which will cap residential rent increases at 2% or link the increase to inflation if it’s lower than this under new housing reforms. The legislation will link rent increases to either the harmonised index of consumer prices or, cap any increases at 2% if inflation rises above this level. It would appear that the Minister has consulted the Attorney General to ensure the plans can withstand any potential legal challenge, and the Government is confident that the new system will be legally sound.
Headline inflation has risen to a 13 year high of 3.7% on foot of pent-up demand and supply chain bottlenecks related to Covid 19. It is expected to surpass 4% in the coming months before easing back next year. The Minister has stated that this is not a temporary measure and that the legislative changes are permanent. It is expected that the legislation will go directly into the Dáil and Seanad early this month.