Not all properties in Rent Pressure Zones are covered by the 4% annual rental cap. Properties exempt include those:
- That are new to the rental market and have not been let at any time in the previous two years, and
- That have undergone a substantial change..
A 'substantial change' must be a significant change or improvement to the dwelling which results in increased market value of the tenancy and therefore adds to the letting value of the property. The substantial change must have resulted in the property increasing its letting value. For example, simple repainting or replacement of white goods would not be sufficient.
The RTB, with the Department of Housing, are preparing guidance on substantial refurbishment which is to be issued shortly