The rental reforms due to take effect from 1 March 2026 are set to change how rents can be increased, how rents may be set at the start of a new tenancy, and how easily a tenancy can be ended. For prospective landlords and investors, this affects day-to-day cash flow, the assumptions behind yield, and the practical options you may have if you want to sell, refurbish, or change how the property is used.
At McCarthy + Co Solicitors LLP, our conveyancing team is currently advising our buy-to-let investor clients on what these changes mean and what due diligence is required before signing contracts.
The key changes at a glance
1) Nationwide rent controls
From 1 March 2026, rent control rules are intended to operate on a nationwide basis, rather than relying on the current RPZ approach. In plain terms, rent increases during a tenancy will be more tightly managed and more predictable because the permitted uplift is linked to inflation, using the Consumer Price Index.
For investors, this means future rental growth may be steadier, but it may also be lower than what the open market could otherwise deliver. When you are running your numbers, it is sensible to model rent increases conservatively and to stress test your cash flow against rising costs, void periods, and interest rate changes.
2) When rent can be set at the market level for a new tenancy
There is a difference between an increase during an existing tenancy and the starting rent for a new tenancy. The reforms contemplate specific situations where the rent for a new letting may be set at market level, for example, after a genuine tenant departure, a long vacancy, or qualifying works, but this is not a free-for-all, and safeguards are intended to apply.
For a buyer, this point is critical when purchasing a tenant-in-situ property where the current rent may be below market. Under the new rules, you may have to live with capped increases while that tenancy continues, and you should not assume you can quickly raise the rent to market level. If the tenant later leaves, you may be able to set the rent closer to market for the next tenancy in certain circumstances, but you will need to follow the correct legal process and keep good records to support the basis for the new rent.
3) Stronger tenant protections for new tenancies
The reforms also strengthen tenant security for new tenancies created from 1 March, including a new minimum duration style framework (a rolling 6-year security model). The broad policy intent is to reduce no-fault terminations, particularly for larger landlords, and to make tenancies more stable once the tenant is settled.
For investors, the key takeaway is that ending a tenancy may be more restricted than before, depending on the reason, the landlord type, and the timing. This matters for exit planning, for refurbishment timelines, and for any strategy that assumes vacant possession, which may not be straightforward, or even possible, in many cases.
Who the rules apply to
New tenancies versus existing tenancies
If you buy a property with a tenant already in place, you should expect that the existing tenancy rules will often continue to govern that letting, rather than the new tenancy protections applying automatically.
“Small” and “large” landlords
Some of the new tenancy protections, particularly around ending a tenancy, depend on whether a landlord is classed as small (1–3 tenancies) or large (4+ tenancies), based on how many tenancies they have. This can matter for investors deciding whether to buy in a personal name or through a company, and for anyone building a portfolio over time.
Student accommodation and new builds
Certain property types are treated differently in parts of the reforms, particularly student-specific accommodation and some newly delivered homes. If you are buying in those categories, it is important to treat them as their own asset class for due diligence, rather than applying standard buy-to-let rules by default.
Require legal assistance with a buy-to-let investment?
At McCarthy + Co Solicitors LLP, we advise buy-to-let purchasers across Ireland, from first-time landlords buying a single apartment to investors acquiring larger portfolios. If you are currently considering an investment opportunity but have concerns about the upcoming changes to the law, the conveyancing team here will be glad to assist you.
Arrange a no-obligation consultation with us using our quick and confidential online form.
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