Micheál Martin has said that the state must create an “alternative system” which supports private investment as well as renters.

In a move that could reshape Ireland’s housing market, Taoiseach Micheál Martin has hinted at a policy pivot that might see the end of rent pressure zones (RPZs) by the end of this year, when the measures are due to expire. The proposed change is part of a broader strategy aimed at luring more private investment into the rental sector—a tactic which has been heavily criticised by opposition parties.

RPZs, first introduced in late 2016, were originally designed to stop steep rent increases in high-demand areas by capping increases at either the rate of inflation or 2%, whichever proved lower. The policy was initially implemented in Dublin and Cork, but has now spread to urban areas across 17 counties.

Speaking on the This Week programme on RTÉ, Martin said: “We have time to see if we can develop an alternative system which protects renters but also (allows for) a clear, stable environment in which to invest.” 

Martin has claimed that the private rental sector in Ireland is deteriorating, and that the government needs to “pivot more strongly” to attract private investment. “The Government is spending huge amounts of money in housing, record levels of spending. The State can’t do it all on its own, and we have to be honest about that. I believe it will entail politically very difficult decisions.”

Just three days ago, the government was accused of misleading the public over housing. In a speech at Beal na Blath last year, Simon Harris said “this year, we will exceed our housing targets with almost 40,000 homes built”. However, according to recently released figures from the Central Statistics Office, the government fell short of this target by 9,700. Sinn Féin’s David Cullinane accused Martin and Harris of deliberately misleading the public in the lead up to the election, stating that when these claims were being made, the government were aware that they “didn’t have a snowball’s chance in hell of delivering 40,000 homes last year.”

In light of this revelation and the newly signalled housing direction, opposition parties have been vocal in criticising the plan, pointing out that rent is currently at record levels in Ireland and the potential changes could lead to unchecked rental increases and even more vulture fund investment.

Sinn Féin housing spokesman Eoin Ó Broin has highlighted that rent is at historic highs, and stated that the new policy will cause it to “increase further.” 

Social Democrats TD and academic known for work on the Irish housing crisis, Rory Hearne has said that “The Taoiseach’s ‘big move’ on housing is ramping up support for vulture funds. We need affordable homes that people can buy and rent, not more unaffordable ‘build to rent’ apartment blocks.”

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