(Effective 1 March 2026)
The Government has approved a number of significant reforms to strengthen rent controls and tenancy protections for all new tenancies created from 1 March 2026. These changes follow recommendations from the Housing Agency’s Review of Rent Pressure Zones and aim to balance tenant protections with landlord needs.
The legislation is currently being drafted and will be published as a priority. This summary explains how the reforms will affect landlords, with a particular focus on the new distinction between Large and Small landlords.
1. Introduction of Tenancies of Minimum Duration (TMDs)
All new tenancies created from 1 March 2026 will automatically become Tenancies of Minimum Duration (TMDs). A TMD lasts for a rolling 6-year period. During this term, a landlord may only terminate the tenancy in specific, limited circumstances.
A tenant may end the tenancy at any time with proper notice. The old termination rules will no longer apply to new tenancies created after 1 March 2026.
2. Large vs Small Landlords: Why the Distinction Matters
Definitions:
– Large Landlord: Owns 4 or more tenancies.
– Small Landlord: Owns 1–3 tenancies.
A single building may contain multiple tenancies, all of which count toward the total. Properties where the landlord shares the home with the tenant remain outside the Residential Tenancies Act.
3. Key Differences Under the Proposed 2026 Reforms
| Large Landlord | Small Landlord |
| 4 or more tenancies. | 3 or fewer tenancies. |
| May terminate only for – breach – unsuitability. |
May terminate for – financial hardship – risk of homelessness – family use – return from abroad – breach – unsuitability. |
| Can not terminate to sell with vacant possession. | Can sell with vacant possession at end of TMD within a 6-month window. |
| Can not terminate for own use or family use. | Can terminate for immediate family use. |
| Can not terminate for renovation or change of use. | May terminate for broader reasons (subject to definitions). |
| More restricted termination rights. | Wider termination grounds available. |
| Likely to sell with sitting tenants. | More flexibility to regain possession. |
4. Rent Setting and Rent Increases
New tenancies from 1 March 2026: Rent may be set at market level if the previous rent was below market and the tenant left voluntarily or due to breach. Future increases capped at CPI or 2%, whichever is lower.
Existing tenancies: Rent increases capped at CPI or 2%, whichever is lower.
5. Impact on Property Sales
All landlords may sell with a sitting tenant at any time.
However Large landlords could possibly face an inability to secure vacant possession. These proposed reforms will be interesting to say the least.
If you have any further questions or would like guidance on your options in respect of the items raised in the above-mentioned article, our team has extensive experience in the area of advising commercial landlords and residential landlords and would be happy to assist.
For more information you can contact Majella Ellis.
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