Rental Reforms Spark Controversy and Concern in Ireland
– Sweeping changes to Ireland’s rental market, approved by the Cabinet in October 2025 and slated to take effect in March, are facing mounting criticism from opposition parties, landlords, and now, even some within the construction industry. The reforms, intended to address the country’s ongoing housing crisis, are raising fears of reduced investment, increased evictions, and higher rents for tenants.
The core of the new legislation allows landlords to set rent at market rate when a tenant leaves a property, a significant departure from the current system which limits increases to the rate of inflation or 2%, whichever is lower. While the government argues this will incentivize investment in the rental sector, critics contend it will create a financial incentive for landlords to evict existing tenants.
“The danger is that landlords will have a financial incentive to evict from March,” noted an analysis published by RTÉ in October 2025, shortly after the Cabinet approval. This concern is echoed by opposition TDs, who are preparing for what is expected to be a contentious debate in the Oireachtas.
Labour TD Conor Sheehan described the pace of the legislation’s publication as “terrible,” stating, “This does not surprise me at all. The bill is a mess, and the minister is adamant it will go through. The Dáil will sit until after midnight in two weeks, and no amendments will be debated. This is a terrible way to do legislation and a terrible way to do such a complex and important bill that has real-world impacts on people and their ability to keep a roof over their heads.” Sheehan further claimed the legislation is “certain” to push up rents.
Sinn Féin’s Eoin Ó Broin has also voiced strong opposition, promising to resist any attempts to “rush” the legislation through parliament. BreakingNews.ie reported that both Sheehan and Ó Broin have criticized the government’s handling of the bill, highlighting concerns about a lack of engagement with proposed amendments.
Despite the criticism, the government is attempting to balance the changes with increased tenant protections. The reforms include the introduction of six-year tenancies starting in March, strengthening tenant rights and effectively ending “no-fault” evictions. Landlords with more than three properties will face stricter limitations on when they can evict tenants, while smaller landlords will be restricted to evictions only in cases of financial hardship or if the property is needed for a family member.
However, these protections are doing little to quell the broader anxieties surrounding the market rate rent setting. A further shift is planned for 2032, when landlords will again be able to reset rents to market value, a provision already described as “enormously controversial.”
Adding another layer of complexity, some of Ireland’s largest homebuilders initially threatened legal action, arguing the reforms represent an “unlawful interference with constitutional property rights.” October Investments, led by developer David Daly, sent letters to the Department of Housing outlining these concerns. Other firms, including Marlet Homes, Ballymore, Cairn Homes, and Carroll Estates, reportedly supported the initial challenge.
However, as of February 7, 2026, those same builders have begun to distance themselves from the prospect of a court case, according to the Irish Times. Daly and others have sought to downplay the likelihood of legal action following an exchange with Minister for Housing James Browne.
Tánaiste Micheál Martin has committed to increasing the supply of rental properties ahead of the Dáil debate, acknowledging the need to address the housing shortage. However, the opposition remains skeptical, arguing that the reforms will ultimately exacerbate the crisis by discouraging investment and pushing renters into a precarious position. As the debate intensifies, the future of Ireland’s rental market hangs in the balance.
The legislation is expected to be guillotined to ensure it is operational by March 1st, a move criticized by opposition parties who argue it will stifle meaningful debate and scrutiny.
