Rent Pressure Zones causing rent increases - IPAV

Rent Pressure Zones (RPZ), a designated area where rents cannot exceed general inflation, are causing rents to increase according to IPAV, the Institute of Professional Auctioneers and Valuers. 

The Leitrim Observer recently reported that in Leitrim, market rents were on average 20.2% higher in the second quarter of 2023 than a year previously with the average listed rent now €1014, up 146% from its lowest point.

Pat Davitt, IPAV Chief Executive, said agents are seeing more properties on the market for rent and RPZ rules are responsible for some of the larger increases captured in the latest report.

“The latest unintended consequence of RPZ legislation is, agents report, landlords not already within RPZ rules increasing rents every two years, according to legislation, but arising from the fear of their areas coming within the rules and their being consequently, and potentially, unable to achieve market rent for a considerable period, regardless of increasing costs, including higher interest rates,” he said.

Mr Davitt said RPZ rules have served to inflate rents form their introduction in December 2016.

“As we’ve said previously, on the introduction of the RPZ system some landlords rushed to rapidly raise rents before the door closed, without a doubt contributing to rent inflation that would otherwise not have happened,” he said.

“Others who didn’t do so got caught in a prolonged lower rent cycle, with limited ability to increase rent, and facing responsibility for upkeep of properties, increasing interest rates and no protection from irresponsible tenants.”