Housing rents to rise between 4.1% and 7.7% next year

Tenants will be hit by hefty rent rises next year, with people living in “affordable” housing facing the biggest increase, according to new government figures.

People living in rent-controlled property with a rent of between €900 and €1184 this year will face an increase of 7.7% next year, while social housing will become up to 5% more expensive.

Tenants in more expensive properties face a 4.1% rise.

The different rates are down to the way rent increases are calculated. Housing which is rent controlled but falls outside the social housing sector goes up in line with average salaries – 6.7% this year. Landlords are able to add 1% on top of that, hence the maximum rise of 7.7%.

Non-rent controlled property may go up in price in line with either wages or inflation, whichever is lower, plus 1%. This year, that means inflation, which averaged 3.1%, taking the maximum increase to 4.1%.

For social housing, costing less than €900 in 2025, the calculations are different again, and will be a maximum 5%, officials decided at last week’s housing summit. This figure also covers the rent for rooms in shared property.

In 2026 the rules will change again and will be based on the average inflation across the preceding three years.