Residential Rental Sector Reforms: What's Changing And Why It Matters

The Government's much-anticipated proposals to reform the rules on rent and security of tenure in the residential tenancy sector were finally announced on 10 June. At a high level, there's something for everyone. There is a relaxation of the rent control rules for new apartments and future tenancies and greater security for renters. The reaction will be mixed but the hope must be that these new reforms bring us closer to achieving the holy grail of regulatory stability that the sector so badly needs.

Rent control

Significantly, an end to the rent pressure zone (RPZ) rent control regime will not come to pass. Instead, its reach will be expanded geographically, beyond the current specifically designated areas, to the whole country. This means that rents for tenancies country-wide will be subject to annual increases capped at the lower of (i) the market (ii) inflation and (iii) 2% (in times of high inflation and unless a limited exception applies).