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Section 19 of the Residential Tenancies Act 2004 – Setting of rent above market rent prohibited

Residential Tenancies Act 2004 (RTA 2004) · PART 3 – Rent and Rent Reviews

Revised Act prepared by the Law Reform Commission, updated to 1 March 2026. Amendments made after that date are not included.

(1)In setting, at any particular time, the rent under the tenancy of a dwelling, an amount of rent shall not be provided for that is greater than the amount of the market rent for that tenancy at that time.
(2)The reference in this section to the setting of the rent under a tenancy is a reference to—

(a) the initial setting of the rent under the tenancy, and

(b) any subsequent setting of the rent under the tenancy by way of a review of that rent.

(3)The setting of the rent under the tenancy of a dwelling that is carried out on or after the 1 March 2026 shall be subject to subsections (4) to (7).
(4)(a) The setting (in this subsection referred to as the "next setting") of a rent under the tenancy of a dwelling … shall , subject to paragraph (aa) neither—

(i) result in such increase in rent as would cause the new rent under the tenancy to exceed the old rent by more than the relevant percentage, nor

(ii) result in such increase in rent as would cause the ratio of the new rent under the tenancy to the old rent to exceed the ratio of the current CPI number to the previous CPI number.

(aa) subparagraph (i) of paragraph (a) shall not apply where—

(i) the dwelling is one of a number of dwellings comprising an apartment complex or a dwelling situated in a building or part of a building referred to in subsection (1A) of section 3 to which this Act applies,

(ii) a commencement notice or a 7 day notice, as the case may be, was given or submitted to a building control authority on or after 10 June 2025, and any regulations made under section 6 (2) of the Building Control Act 1990 have been complied with, in respect of—

(I) works consisting of construction of the apartment complex, or building or part of a building, as the case may be, in which the dwelling is situated,

(II) works consisting of an extension to permanently increase the floor area of the apartment complex, or building or part of a building in which the dwelling is situated, by an amount not less than 25 per cent of that floor area as it stood immediately before the commencement of the works, or

(III) works in respect of a change of use of a structure to create the apartment complex, or building or part of a building in which the dwelling is situated, where on completion of the works the apartment complex or building or part of a building, as the case may be, occupies not less than 25 per cent of the floor area of the structure as it stood immediately before the commencement of the works.

(b) In this subsection—

"current CPI number" means the CPI number published by the Board in accordance with subsection (4C) relating—

(a) to the month immediately preceding the month in which the next setting takes place, or

(b) in a case in which the CPI number relating to the month first-mentioned in paragraph (a) is not so published on or before the next setting, to the month immediately preceding that month;

"new rent" means, in relation to the tenancy of a dwelling, the rent under the tenancy set at the next setting;

"old rent" means, in relation to the tenancy of a dwelling—

(a) the rent under that tenancy set at the previous setting, or

(b) where that tenancy is a new tenancy, the rent under the tenancy (immediately preceding the new tenancy) of that dwelling set at the previous setting;

"previous CPI number" means—

(a) in relation to a previous setting that took place before 1 March 2026, the CPI number published by the Board in accordance with subsection (4C) relating to the month in which the previous setting took place,

(b) in relation to a previous setting that takes place on or after 1 March 2026—

(i) the CPI number published by the Board in accordance with subsection (4C) relating to the month immediately preceding the month in which the previous setting took place, or

(ii) in circumstances where the CPI number referred to in subparagraph (i) was not so published by the time the previous setting took place, the CPI number so published relating to the month immediately preceding the month first-mentioned in that subparagraph;

"previous setting" means, in relation to the next setting of a rent under the tenancy of a dwelling, the most recent setting (before the next setting) of the rent under—

(a) that tenancy of the dwelling, or

(b) where the next setting relates to a new tenancy of that dwelling, the tenancy of that dwelling immediately preceding the new tenancy;

"relevant percentage" means, in relation to the setting of the rent under the tenancy of a dwelling—

(a) 2 per cent of the old rent in respect of each year that has elapsed since the previous setting, and

(b) as respects any additional period that has elapsed between the previous setting and the next setting that is shorter than a year, such percentage as bears to 2 per cent the same proportion that that period bears to a year.

(c) For the purposes of this subsection, a tenancy immediately precedes a new tenancy if—

(i) it expired at any time—

(I) during the period of 2 years prior to the creation or coming into being of the new tenancy, or

(II) in the case of a new tenancy to which subparagraph (i) of paragraph (a) of subsection (5) applies, during the period of one year prior to the creation or coming into being of the new tenancy, and

(ii) no other tenancy was created or came into being during the period between the expiration of that tenancy and the creation, or coming into being, of the new tenancy.

(4A) …

(4B) …

(4C) The Board shall—

(a) …

(aa) establish and maintain a rent increase calculator to calculate any increase in rent in accordance with subsection (4),

(b) publish and keep up to date a table of CPI numbers published by the Central Statistics Office.

(4D) The Minister, for the purposes of subsections (4) and (4C), may prescribe—

(a) …

(aa) the means by which the rent increase calculator referred to in subsection (4C)(aa) shall operate to accurately calculate any increase in rent by applying the CPI numbers to the rent,

(b) the information to be furnished in the table referred to in subsection (4C)(b), and

(c) the form and manner of publication by the Board of that calculator and table.

(d) …

(5)Subsection (4) does not apply—

(a) to the rent first set under a tenancy created on or after 1 March 2026 of—

(i) a dwelling—

(I) in a protected structure or proposed protected structure within the meaning of section 2 of the Planning and Development Act 2024, or

(II) that is such a structure,

provided that no tenancy in respect of that dwelling subsisted during the period of one year immediately preceding the date on which the tenancy concerned was created,

(ii) a dwelling, other than a dwelling referred to in subparagraph (i), in respect of which no tenancy subsisted during the period of two years immediately preceding the date on which the tenancy concerned was created,

(iii) a dwelling, other than a dwelling referred to in subsection (1A) of section 3, in respect of which the most recent previous tenancy during the period of two years immediately preceding the date on which the tenancy concerned was created, was—

(I) a Part 4 tenancy that was terminated by the landlord by serving a notice of termination on the tenant of the dwelling that cited as a reason or reasons for the termination the ground or grounds specified in paragraph 1, 1A or 2 of the Table to section 34, or

(II) a tenancy to which Part 4 did not apply that was terminated by the landlord by serving a notice of termination that stated as a reason or reasons for the termination the grounds referred to in section 62(1)(da)(i), (ii) or (iii),

or

(iv) a dwelling, other than a dwelling referred to in subsection (1A) of section 3, in respect of which the most recent previous tenancy was terminated by the tenant,

(aa) in the case of a tenancy (other than a tenancy to which section 5 (4) of the Residential Tenancies (Amendment) Act 2021 applies) created on or after 1 March 2026 of a dwelling (other than a dwelling referred to in subsection (1A) of section 3), to the rent set under the tenancy following a period of not less than 6 years during which—

(i) subsection (4) applied to the rent under the tenancy, and

(ii) any setting of that rent was in compliance with the requirements of subsection (4),

(ab) in the case of a tenancy created on or after 1 March 2026 and before 1 March 2029 of a dwelling referred to in subsection (1A) of section 3, to the rent set under the tenancy following a period of not less than 3 years during which—

(i) subsection (4) applied to the rent under the tenancy, and

(ii) any setting of that rent was in compliance with the requirements of subsection (4),

(ac) in the case of a tenancy created on or after 1 March 2029 of a dwelling referred to in subsection (1A) of section 3 that was such a dwelling for the 3 years immediately preceding the date on which the tenancy concerned was created—

(i) to the rent first set under the tenancy, provided that—

(I) a tenancy in respect of the dwelling subsisted for at least 6 months during each of those 3 years,

(II) subsection (4) applied to the rent under the tenancy or tenancies, and

(III) any setting of that rent was in compliance with the requirements of subsection (4),

and

(ii) to any rent subsequently set under the tenancy following a period of not less than 3 years during which—

(I) subsection (4) applied to the rent under the tenancy or tenancies, and

(II) any setting of that rent was in compliance with the requirements of subsection (4), or

(b) if, in the period since the rent was last set under a tenancy for the dwelling—

(i) a substantial change in the nature of the accommodation provided under the tenancy occurs, and

(ii) the rent under the tenancy, were it to be set immediately after that change, would, by virtue of that change, be greater than the market rent for the tenancy at the time the rent was last set under a tenancy for the dwelling.

(5A) For the purposes of paragraph (b) of subsection (5), a substantial change in the nature of the accommodation provided under the tenancy shall only have taken place where—

(a) the works carried out to the dwelling concerned—

(i) consist of a permanent extension to the dwelling that increases the floor area of the dwelling by an amount equal to not less than 25 per cent of the floor area of the dwelling as it stood immediately before the commencement of those works,

(ii) in the case of a dwelling to which the European Union (Energy Performance of Buildings) Regulations 2012 (S.I. No. 243 of 2012) apply, result in the BER … being improved by not less than 7 building energy ratings, or

(iii) result in any 3 or more of the following:

(I) the internal layout of the dwelling being permanently altered;

(II) the dwelling being adapted to provide for access and use by a person with a disability, within the meaning of the Disability Act 2005;

(III) a permanent increase in the number of rooms in the dwelling;

(IV) in the case of a dwelling to which the European Union (Energy Performance of Buildings) Regulations 2012 (S.I. No. 243 of 2012) apply and that has a BER of D1 or lower, the BER … being improved by not less than 3 building energy ratings; or

(V) in the case of a dwelling to which the European Union (Energy Performance of Buildings) Regulations 2012 (S.I. No. 243 of 2012) apply and that has a BER of C3 or higher, the BER … being improved by not less than 2 building energy ratings,

and

(b) the works carried out under paragraph (a) do not solely consist of works carried out for the purposes of compliance with section 12(1)(b).

(5B) Where, in setting, at any particular time, the rent under the tenancy of a dwelling …, a landlord seeks to rely on subsection (5), the landlord shall—

(a) serve a notice in the prescribed form together with all relevant supporting information on the Board and the tenant setting out the reasons why, in the landlord’s opinion, subsection (4) does not apply to the dwelling,

(b) specify in the notice the rent set under the tenancy of the dwelling and the amount of rent last set under the tenancy of the dwelling, and

(c) serve the notice and information under paragraphs (a) and (b) within 1 month from the setting of the rent under the tenancy of the dwelling.

(6)Where a notice referred to in section 22(2) has been served by a landlord on the tenant before 1 March 2026, then this section shall apply to the new rent, referred to in section 22(2), stated in that notice in accordance with section 22, as if section 8 of the Residential Tenancies (Miscellaneous Provisions) Act 2026 had not been enacted.

(6A) A person who fails to comply with the requirements of subsection (4) … shall be guilty of an offence.

(6B) A person, who in purported compliance with subsection (5B), furnishes information to the Board which is false or misleading in a material respect knowing it to be so false or misleading or being reckless as to whether it is so false or misleading shall be guilty of an offence.

(6C) A person who fails to comply with the requirements of subsection (5B) shall be guilty of an offence.

(7)In this section—

"7 day notice" has the same meaning as it has in the Building Control Act 1990;

"building control authority" has the same meaning as it has in the Building Control Act 1990;

"commencement notice" means a notice referred to in paragraph (k) of section 6 (2) of the Building Control Act 1990;

"CPI number" means the All Items Consumer Price Index Number compiled and published by the Central Statistics Office.

Official source: revisedacts.lawreform.ie · Version: · Full text · Contents

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