Rent reforms defended as landlord behind Kildare apartment deal predicts increased ‘cashflows’

Taoiseach Micheál Martin has defended the government’s rent reforms after a major landlord who recently announced the purchase of 77 apartments in Kildare predicted they would lead to increases in its rental income.

Ires Reit, Ireland’s largest residential landlord, owns 3,627 properties with an average rent of €1,852.

In its preliminary results for 2025, it has said that the “positive” changes announced by the government could see a “+25% potential rental income uplift with minimal added costs”.

Separately when it announced the off-market acquisition of the apartment block in Finlay Park yesterday, the company expected “the investment is projected to generate a Net Initial Yield of approximately 5.25% and will be earnings enhancing following the lease up period.” 

Sinn Féin leader Mary Lou McDonald said the property funds “are set for a bonanza”.

“This paints a frightening picture of the size of the rent increase is coming down the tracks due to your decisions.

“This company is telling their investors that they stand to make an extra 21 million euros in rents every year, once your legislation flows through.” The government has said its Residential Tenancies Bill will provide greater security for renters and boost supply, while the opposition has said it will dramatically increase rent costs by thousands a year.

The Bill overhauled Rent Pressure Zones (RPZs), caps for areas of high rental demand, and extended them nationwide, where rents must be linked to the rate of inflation or at two per cent.

Any tenancies beginning from this Sunday, March 1st, will be of a minimum duration of six years and at the end of that term, landlords can raise rents beyond the cap to match the market rate.

Ires Reit, Ireland’s largest residential landlord, has said these measures will lead to “increased cashflows”, while changes to design standards for apartments and VAT changes would see “greater liquidity”.

It also said that the exemption of new-build apartments from the 2% cap would “incentivise” new builds and provide “opportunities for growth”.

“Now, Taoiseach, you’ve been found out. Now we see the proof straight from the horse’s mouth,” Ms McDonald said during Leaders’ Questions on Wednesday.

“The biggest corporate landlord in Ireland is saying out loud the very thing that you denied – they will make a fortune from your legislation, all on the backs of renters.

“This is a recipe for a disaster in the lives of workers, of families, of our young people.” 

Taoiseach Micheal Martin defended the decision (Cillian Sherlock/PA) Responding, Martin said that more than 290,000 people who are currently renting would not be “impacted negatively” and said the changes were based on analysis from the Housing Commission and the ESRI.

“The minister has balanced that with security of tenure for tenants of six years, essentially ending no-fault evictions, where landlords could end the tenancy without a tenant having done anything wrong.

“This bill will give far more legal protection to renters than they’ve ever had in the history of the state, that is the bottom line.” He said that 36,000 houses were built last year and they needed to reach 50,000 a year, which will cost an estimated to 20 billion euros between public and private funds.

“Yes, we do want to bring investment back into the market, because we have not been building enough apartments to date.

“Supply is the key instrument we have to moderate rents in the medium term – let’s be under no illusion.” McDonald replied: “Security of tenure my eye.

“We’re talking about the biggest rip-off of renters in a generation.

“This sends a shiver down the spine of every renter right across the land, and it is directly because of your decisions, your choices, Fianna Fáil and Fine Gael. Your legislation is causing this to happen.”