19.—(1) In setting, at any particular time, the rent under the tenancy of a dwelling, an amount of rent shall not be provided for that is greater than the amount of the market rent for that tenancy at that time.

(2) The reference in this section to the setting of the rent under a tenancy is a reference to—

(a) the initial setting of the rent under the tenancy, and

(b) any subsequent setting of the rent under the tenancy by way of a review of that rent.

F43[(3) The setting of the rent under the tenancy of a dwelling that is carried out on or after the relevant date shall be subject to subsections (4) to (7).

F44[(4) (a) The setting (in this subsection referred to as the "next setting") of a rent under the tenancy of a dwelling in a rent pressure zone at any time after the commencement of section 3 of the Residential Tenancies (Amendment) Act 2021 shall neither—

(i) result in such increase in rent as would cause the new rent under the tenancy to exceed the old rent by more than the relevant percentage, nor

(ii) result in such increase in rent as would cause the ratio of the new rent under the tenancy to the old rent to exceed the ratio of the current HICP value to the previous HICP value.

(b) In this subsection—

"current HICP value" means the HICP value published by the Board in accordance with subsection (4C) relating—

(a) to the month immediately preceding the month in which the next setting takes place, or

(b) in a case in which the HICP value relating to the month first-mentioned in paragraph (a) is not so published on or before the next setting, to the month immediately preceding that month;

"new rent" means, in relation to the tenancy of a dwelling, the rent under the tenancy set at the next setting;

"old rent" means, in relation to the tenancy of a dwelling—

(a) the rent under that tenancy set at the previous setting, or

(b) where that tenancy is a new tenancy, the rent under the tenancy (immediately preceding the new tenancy) of that dwelling set at the previous setting;

"previous HICP value" means—

(a) in relation to a previous setting that took place before the commencement of section 3 of the Residential Tenancies (Amendment) Act 2021, the HICP value published by the Board in accordance with subsection (4C) relating to the month in which the previous setting took place,

(b) in relation to a previous setting that takes place on or after such commencement—

(i) the HICP value published by the Board in accordance with subsection (4C) relating to the month immediately preceding the month in which the previous setting took place, or

(ii) in circumstances where the HICP value referred to in subparagraph (i) was not so published by the time the previous setting took place, the HICP value so published relating to the month immediately preceding the month first-mentioned in that subparagraph;

"previous setting" means, in relation to the next setting of a rent under the tenancy of a dwelling, the most recent setting (before the next setting) of the rent under—

(a) that tenancy of the dwelling, or

(b) where the next setting relates to a new tenancy of that dwelling, the tenancy of that dwelling immediately preceding the new tenancy;

"relevant percentage" means, in relation to the setting of the rent under the tenancy of a dwelling—

(a) 2 per cent of the old rent in respect of each year that has elapsed since the previous setting, and

(b) as respects any additional period that has elapsed between the previous setting and the next setting that is shorter than a year, such percentage as bears to 2 per cent the same proportion that that period bears to a year.

(c) For the purposes of this subsection, a tenancy immediately precedes a new tenancy if—

(i) it expired at any time—

(I) during the period of 2 years prior to the creation or coming into being of the new tenancy, or

(II) in the case of a new tenancy to which subparagraph (i) of paragraph (a) of subsection (5) applies, during the period of one year prior to the creation or coming into being of the new tenancy, and

(ii) no other tenancy was created or came into being during the period between the expiration of that tenancy and the creation, or coming into being, of the new tenancy.]

F45[(4A) F46[…]

(4B) F46[…]

(4C) The Board shall—

(a) establish and maintain a rent pressure zone calculator to calculate any increase in rent in a rent pressure zone in accordance with F47[subsection (4)], and

(b) publish and keep up to date a table of HICP values published by the Central Statistics Office.

(4D) The Minister, for the purposes of F47[subsections (4) and (4C)], may prescribe—

(a) the means by which the rent pressure zone calculator referred to in subsection (4C)(a) shall operate to accurately calculate any increase in rent in a rent pressure zone by applying the HICP values to the rent,

(b) the information to be furnished in the table referred to in subsection (4C)(b), F48[and]

(c) the form and manner of publication by the Board of that calculator and F47[table.]

(d) F49[…]]

(5) F50[Subsection (4) does not apply]—

F51[(a) to the rent first set under the tenancy of—

(i) a dwelling—

(I) in a protected structure or proposed protected structure within the meaning of the Planning and Development Act 2000, or

(II) that is such a structure,

provided that no tenancy in respect of that dwelling subsisted during the period of one year immediately preceding the date on which the tenancy concerned commenced, or

(ii) any other dwelling, provided that no tenancy in respect of that dwelling subsisted during the period of 2 years immediately preceding the date on which the tenancy concerned commenced,]

(b) if, in the period since the rent was last set under a tenancy for the dwelling—

(i) a substantial change in the nature of the accommodation provided under the tenancy occurs, and

(ii) the rent under the tenancy, were it to be set immediately after that change, would, by virtue of that change, be F52[greater than] the market rent for the tenancy at the time the rent was last set under a tenancy for the dwelling.

F53[(5A) For the purposes of paragraph (b) of subsection (5), a substantial change in the nature of the accommodation provided under the tenancy shall only have taken place where—

(a) 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 per cent of the floor area (within such meaning) of the dwelling as it stood immediately before the commencement of those works,

(ii) in the case of a dwelling to which the European Union (Energy Performance 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

(iii) result in any 3 or more of the following:

(I) the internal layout of the dwelling being permanently altered;

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

(III) a permanent increase in the number of rooms in the dwelling;

(IV) 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

(V) 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 or higher, the BER (within the meaning of those Regulations) being improved by not less than 2 building energy ratings,

and

(b) the works carried out under paragraph (a) do not solely consist of works carried out for the purposes of compliance with section 12(1)(b).]

F54[(5B) Where, in setting, at any particular time, the rent under the tenancy of a dwelling in a rent pressure zone, a landlord seeks to rely on subsection (5), the landlord shall—

(a) serve a notice in the prescribed form together with all relevant supporting information on the Board setting out the reasons why, in the landlord’s opinion, subsection (4) does not apply to the dwelling,

(b) specify in the notice the rent set under the tenancy of the dwelling and the amount of rent last set under the tenancy of the dwelling, and

(c) serve the notice and information under paragraphs (a) and (b) within 1 month from the setting of the rent under the tenancy of the dwelling.]

F55[(6) Where—

(a) a notice under section 22(2) has been served on the tenant, or

(b) the review of the rent concerned has commenced,

before the relevant date, or, F56[if an order is made by the Minister under section 24A(5) or (6A)] in respect of an area where the dwelling concerned is situate, before the date of the coming into operation of the order, then F50[subsections (3) and (4)] shall not apply to the new rent, referred to in section 22(2), stated in that notice in accordance with that section.]

F57[(6A) A person who fails to comply with the requirements of F58[subsection (4) F49[…]] shall be guilty of an offence.]

F59[(6B) A person, who in purported compliance with subsection (5B), furnishes information to the Board which is false or misleading in a material respect knowing it to be so false or misleading or being reckless as to whether it is so false or misleading shall be guilty of an offence.

(6C) A person who fails to comply with the requirements of subsection (5B) shall be guilty of an offence.]

(7) In this section—

F45["HICP values" means the values contained in the most recent data available monthly in the All-Items Harmonised Index of Consumer Prices in relation to Ireland and published monthly by the Central Statistics Office in accordance with Regulation (EU) 2016/792¹of the European Parliament and of the Council of 11 May 2016 on harmonised indices of consumer prices and the house price index, and repealing Council Regulation (EC) No. 2494/95;]

F49[…]

"relevant date" means the date section 33 of the Planning and Development (Housing) and Residential Tenancies Act 2016 comes into operation;

"rent pressure zone" means an area—

(a) prescribed by the Minister by order under section 24A as a rent pressure zone under that section, or

(b) in respect of an area to which section 24B relates, deemed to be so prescribed by the Minister under section 24A.]