Improved Rent Controls

A review of the private rental sector highlighted the need to improve rent regulation. Following this, the Housing Agency examined the impact of Rent Pressure Zones (RPZs) and recommended changes.

What’s Changing?

• A national system of rent controls will replace the current RPZ system.
• Rent increases within a tenancy will be limited to 2% or inflation (CPI), whichever is lower.
• Landlords can reset rent to market level between tenancies, except where a tenant is evicted without cause.
• Extra protections will prevent economic evictions.

Special Rules for New Builds

• For new apartments and student accommodation, rent increases will be capped at inflation (CPI) only.
• This aims to encourage investment and increase the supply of rental homes.

Why These Changes?

• To keep rents affordable.
• To attract new investment in rental housing.
• To retain existing landlords in the market.

When Will It Happen?

• All areas are already RPZs, limiting annual rent increases to 2%.
• The new system will start on 1 March 2026.