Housing minister to relax some rent cap rules to boost supply

Housing minister Elanor Boekholt-O’Sullivan has confirmed she plans to relax some of the rules covering rent caps to prevent more small landlords selling off homes because of falling returns.

The minister said in a briefing to parliament on Monday that she plans to change the way “points” are allocated to a property—which are used to determine rent—and which will make it possible for landlords to charge more in some cases.

Currently one third of the property value is used to calculate “points” which are used to establish maximum rents for a property.  The minister now plans to allow landlords to charge a price supplement reflecting the full valuation, while keeping the property within the regulated mid-rental segment.

The minister also plans to scrap the existing 5-point deduction for properties lacking outdoor space such as a balcony or garden, because outdoor space is often impossible to provide in dense urban areas.

Landlords who own small listed buildings will also be able to charge more, based on their WOZ value.

The minister is also planning to introduce a temporary rental contract for all students. Currently, only students who have moved town or city to study can get temporary rental contracts and this, the minister says, disadvantages local students when competing for housing.

Boekholt-O’Sullivan said she hopes all these measures can be implemented by January 1, 2027. They still have to be debate and voted on by both houses of parliament.

In addition, in an effort to persuade more investors to put money into residential property, the government is also planning to extend the current 20-year 10% premium developers can charge on newly built rentals by a further four years to 24.

Improving the investment climate for private landlords and housing corporations is “essential to realise sufficient affordable housing,” the minister said.