The Irish Property Owners Association (IPOA) has expressed concern for the future of the rental market as the Government denies adequate debate for the Residential Tenancies (Miscellaneous Provisions) Bill 2026.
The new regulations could significantly devalue rental properties by preventing sales with vacant possession in many circumstances. Properties sold with a sitting tenant typically achieve lower prices because owner-occupiers cannot compete to purchase them. This is particularly acute in situations where a person who goes into a nursing home and decides to rent out their home. They will now have to let the property for a 6-year period, meaning that in the event of death, the executor will have to become a landlord, and may be forced to sell with a tenant in situ, leading to a significant loss on the value of the property.
According to the Central Statistics Office (CSO) the average residential purchase price was approximately €445,000 in July 2025. However, according to the Residential Tenancies Board (RTB) average national rent was €1,452 per month in Q3 2025. Applying standard investment yield of 6%, this would equate to a rental property value of approximately €290,000. This suggests that the act of renting out a property leads to a devaluation of 35%, or €155,000 on an average Irish rental property.
This gap highlights a growing disconnect between rental income and property values. If regulatory changes increase risk or limit returns, investors are likely to price properties more strictly on rental yield. That adjustment could translate into a significant downward repricing of landlord-held assets.
For many small landlords, rental property functions as a long-term retirement investment. Sudden regulatory shocks that materially affect asset values risk undermining financial planning for ordinary households, not institutional investors.
Mary Conway, Chairperson of the IPOA, said: “The Bill has been rammed through the Oireachtas and will be signed imminently by the President. A notable omission is the lack of engagement between the Government and the political process.
The rental market is becoming inoperable for many private landlords. Emergency tax measures could make the market slightly more tenable, and at the very least, incentivise some landlords to remain in the market.”
The IPOA is calling for an emergency tax package of measures to ensure private landlords stay in the market after March 1st, noting that the new regulations will drive landlord exits, rents will increase, and properties will be devalued.
Key emergency tax measures include:
- Expanding the range of expenses for tax deductibility for landlords, including Local Property Tax;
- Taxing rental income the same as income to a trading business;
- Reducing capital allowances write off to 4 years at 25% per annum;
Finally, the IPOA are urging all landlords to seek independent advice on the impact of the new legislation before entering new tenancies.
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