Exemptions to Rent Pressure Zones rental restriction

Not all rental properties in Rent Pressure Zones are subject to a rental restriction

It is important to remember that not all properties in Rent Pressure Zone areas are subject to the 4% rent restriction. Exempt properties include properties that have not been rented for a period of two years prior to the immediate tenancy commencement date, and those that have undergone a 'substantial change in the nature of the accommodation'. 

There have been changes to the legislation effective from 4th June 2019 relating to the exemption rules and criteria as set out below. The following exemptions may be applied by landlords: 

Exemption 1: The initial setting of the rent on a dwelling which had not been rented for a period of two years prior to the immediate tenancy commencement date. All rent reviews thereafter must adhere to the Rent  Pressure Zone formula. 

Exemption 2: A 'substantial change' in the nature of the accommodation has been defined in the legislation and will only be deemed to have taken place where the below criteria is met:

“the works carried out to the dwelling concerned - 

(i) consist of a permanent extension to the dwelling that increases the floor area (within the meaning of Article 6 of the Building Regulations 1997 (S.I. No. 497 of 1997)) of the dwelling by an amount equal to not less than 25% of the floor area (within such meaning) of the dwelling as it stood immediately before the commencement of those works, 

or

(ii) in the case of a dwelling to which the European Union (Energy Performanceo of Buildings) Regulations 2012 (S.I. No. 243 of 2012) apply, result in the BER (within the meaning of those Regulations) being improved by not less than 7 building energy ratings, 

or any 3 or more of the following:

the internal layout of the dwelling being permanently altered;

the dwelling being adapted to provide for access and use by a person with a disability, within the meaning of the Disability Act 2005;

a permanent increase in the number of rooms in a dwelling; 

in the case of a dwelling to which the European Union (Energy Performance of Buildings) Regulations 2012 (S.I. No. 243 of 2012) apply and that has a BER of D1 or lower, the BER (within the meaning of those Regulations) being improved by not less than 3 building energy ratings; or

in the case of a dwelling to which the European Union (Energy Performance of Buildings) Regulations 2012 (S.I. No. 243 of 2012) apply and that has a BER of C3 of higher, the BER (within the meaning of those Regulations) being improved by not less than 2 building energy ratings.