Rent increases are now going to be capped in line with inflation.
At present, landlords can hike rents by 4 percent a year in rent pressure zones.
However, they can now only do it in line with inflation rates.
Inflation was under 1 percent last year and is currently at around 2 percent.
Housing Minister Darragh O'Brien says the scheme is to be reformed under new laws, which are expected to come into effect later this month.
He says changes to the scheme are "fairer" and if landlords go above the inflation rate they’d be breaking the law:
"If you look at inflation over the last three years, that averages around 0.73% per annum – so just under one-quarter of 1%.
"So, instead of a 4% increase that some tenants would have borne because that was the maximum – the maximum over the last three years would have been under 1%.
"Now, currently, inflation is running a bit higher than that but we are still looking at about 1.9%"
Minister O'Brien says the legislation will also extend the current eviction and rent bans for those most affected by Covid-19 until January of next year.
It comes as a new survey by Threshold found just 1 in 4 people renting in Ireland are doing so by choice.
More than half are renting because they can't afford to buy.
Six in 10 renters say they're hopeful of owning their own home in 5 years, but only half of them expect to be able to.
Main Image: Minister for Housing, Local Government and Heritage Darragh O'Brien arrives at Dublin Castle for a cabinet meeting.
