Ireland caps rent hikes at 2% for tenancies signed since March 1

Ireland's new rental regime caps annual rent hikes at 2% or CPI, whichever is lower, for tenancies signed on or after March 1.

A 2% ceiling, with one big reset

The Residential Tenancies Act rebuilds the math for anyone renting in Ireland. Standard new tenancies now carry a 6-year minimum duration and within that window rent can move only once every 12 months by 2% or CPI, whichever is lower. Newly built apartments where construction began after June 10, 2025 and some student-specific accommodation are exempt from the 2% floor and tracked to CPI only.

The catch sits at the edges of the cycle. Landlords can reset to full market rent at the start of a new tenancy if the previous tenant left voluntarily or in breach and again at the end of each 6-year cycle. That makes the cap a strong ceiling mid-tenancy and a weak one at turnover.

What it costs a nomad month to month

Run the numbers on a typical Dublin one-bed at €2,200 ($2,376) a month. Under the old uncapped system, a 6% bump added €132 ($143) a month or €1,584 ($1,710) over a year. Under the new cap, the same rent can rise no more than €44 ($48) a month or €528 ($570) annually. Over the full 6-year tenancy, compounding at 2% versus 6% is the difference between paying roughly €2,478 ($2,676) and €3,121 ($3,371) in the final month.

Tenants signing leases in late 2025 stay under the old framework. The split matters for anyone weighing a December move-in against a March one when renting in Ireland.

The fee schedule and the fine print

Costs and process points to budget for:

• Rent increase cap: 2% or CPI, whichever is lower, once per 12 months
• CPI-only exemption: new-build apartments started after June 10, 2025 and qualifying student housing
• Market reset triggers: new tenancy after voluntary departure or breach; end of each 6-year cycle
• Notice rule: any rent review notice must reach the Residential Tenancies Board the same day it reaches the tenant or the review is void
• Comparables: three rents from the RTB Rent Register required when resetting to market

Deposits, holding fees and agency charges sit outside the Act and remain a private cost. Existing tenancies signed before March 1 stay on the old rules until they roll over.