'Options paper' suggests 2% rent rise once RPZs run out | Breaking News & Latest Ireland Updates

'Options paper' suggests 2% rent rise once RPZs run out — Minister for Housing James Browne has received an "options paper" from the Housing Agency which suggests landlords should be allowed to increase rent ...

Minister for Housing James Browne has received an "options paper" from the Housing Agency which suggests landlords should be allowed to increase rent by more than 2% when rent pressure zones run out at the end of this year.

RTÉ News understands the Department of Housing was given the options paper in the past week, at the same time as Mr Browne was at the centre of the Housing Activation Office housing czar appointment controversy.

According to a number of sources, the options paper sets out three options for what should happen when rent pressure zones finish at the end of this year.

The first is to retain the existing system, the second is to scrap it entirely and the third is to allow landlords who own properties in rent pressure zones to increase their rents by more than the current limit of 2% if they wish to do so.

It is understood the options paper has recommended the third option - namely to allow landlords to increase their rents over and above current rent pressure zone limits.

However, sources have stressed that this is currently simply an options paper, and that neither Mr Browne nor the Cabinet will be making any decision on the matter for a number of weeks.

Rent pressure zones have been in place for a number of years in parts of the country where rents are highest, where rental prices are rising quickly, and where there is a shortage of affordable accommodation.

Under the current system, a landlord cannot increase their rent by more than 2% per year if it involves a property in a rent pressure zone.

While the system was due to run out at the end of 2024, the Government instead agreed in May 2024 to extend the system under 31 December 2025.

Speaking in March, Taoiseach Micheál Martin confirmed that the Government is considering whether to continue with the existing system or to replace it with a system "which protects renters but also enables people to have a clear, stable environment in which to invest".

Govt must ask if it has confidence in housing minister, says SF

Sinn Féin TD Donna McGettigan has said the Government should ask itself if it still has confidence in Minister for Housing James Browne following how the appointment of a housing czar was handled.

Speaking on RTÉ's The Week in Politics programme, Ms McGettigan said after recent days she wanted to know whether the Government had confidence in Mr Browne to solve the housing crisis.

Ms McGettigan said the mooted €430,000 retained salary for NAMA chief executive Brendan McDonagh,who on Thursday said he no longer wanted to be considered to lead the Housing Activation Office, was the equivalent of 11 gardaí.

Watch: Sinn Féin TD Donna McGettigan says Govt must ask if it has confidence in Browne

On the same programme, when asked what chance he believed the Government has in meeting its housing targets this year, Social Democrats TD Gary Gannon said: "Zip."

Mr Gannon described the controversy around the appointment of a housing czar as being "in omnishambles territory" and said while the independent housing commission recommended a housing executive with legislative footing "what we got was a strong man" suggestion from Government.

Responding to the criticism, Fianna Fáil TD and Minister for Higher and Further Education James Lawless said the "public don't want parlour games" and that he believes it is "crystal clear" a Housing Activation Office is needed.

Asked to respond to the housing czar plan, he said the Government was focused on the Housing Activation Office and that "nobody was talking about [a housing tsar]".

Read more:What is the Housing Activation Office and who will lead it?€430,000 salary for housing role inappropriate - Harris

On Friday, Tánaiste and Fine Gael leader Simon Harris said he did not believe a €430,000 salary to lead the Government's new Housing Activation Office would be appropriate, insisting "we have to get this right".

Asked on RTÉ's The Late Late Show whether such a salary is appropriate for a job which is meant to involve overseeing housing reforms to help people who cannot currently afford a home, Mr Harris said, "I don't".

However, he added, "this isn't about any one person", adding "I think what's most important is we get the skillset right".