Campaigners’ new challenge to ‘landlords using loophole’

LANDLORDS are exploiting a loophole on rent caps by claiming the property is being refurbished, housing charity Threshold has claimed.

Rents cannot be raised in designated Rent Pressure Zones for two years after the start of a lease, after which a 4% annual increase is allowed. However, exemptions are allowed if a landlord is giving the property to a family member or instigating renovations or refurbishments.

While a tenant evicted for refurbishments is given first refusal on the property if it comes back onto the market within six months, landlords are permitted to increase the rent beyond the 4% RPZ limit.

Threshold say they have been contacted by more than 2,000 people who have been issued termination notices by landlords so far this year.

Of these, 200 cases are related to landlords seeking to carry out substantial renovations and wanting the tenants to leave.

Threshold’s Dublin services manager, Stephen Large, told RTÉ: ‘We’re seeing lots of landlords using the grounds for refurbishment and renovations to end a tenancy, but also to try to re-let the property at a much higher rent.’

The Department of Housing said a definition of what constitutes ‘substantial refurbishment’ of a dwelling will be sent to landlords soon by the Residential Tenancies Board.