A lobby group representing landlords has said its members are considering introducing a raft of new charges for tenants and withdrawing from State-sponsored letting schemes in response to the Government's rental plans.
The legislation, which will cap annual rent increases at 4% in parts of the country for the next three years, was passed in the Dáil tonight.
This evening, the Irish Property Owners Association, which lists 5,000 members on its website, said "hard-pressed landlords are the victims of the newest onslaught on the sector".
Following a meeting with members, the IPOA issued a statement stating that the "measures being introduced are so severe that rents will not cover costs and devaluation of property will be significant".
The statement said its members are now "seriously considering" withdrawing from State-sponsored rental schemes; introducing new fees for keys, documents and car parking; additional service, letting and registration charges as well as contributions for Local Property Tax.
Minister for Housing Simon Coveney this evening said many described his plan to cap rent increases as pro-landlord but he said the IPOA statement suggests otherwise.
Mr Coveney said his department has checked the wording of new legislation on the rent certainty measures to ensure that rents in designated areas do not increase by more than 4% annually.
He said his team worked late into the night and took advice from the Attorney General last night following a drafting difficulty that arose in the legislation.
Some TDs were concerned that the wording could see rents for some tenancies rise by 8%.
Mr Coveney said the new wording would ensure that anyone who is a tenant in a rent pressure zone will be sure that at the end of their two-year tenancy they will not face more than a 4% increase, and thereafter there would no be more than a 4% increase.
Mr Coveney also clarified that regardless of when a rent review happens, a property in the designated zone could not have a rent increase of more than 4% in a 12-month period.
He explained that if there was a change of tenancy after six months, then the rise would be 2%.
He said the Government did not want to have an incentive for landlords in a rent pressure zone ending a tenancy early.
The Dáil sat later than scheduled tonight to debate the Planning and Development and Residential Tenancies Bill, which was backed by 52 TDs with 43 voting against and 25 abstaining.
The Bill will now be debated in the Seanad next Wednesday.
It is likely to be enacted before the beginning of the New Year.
An amendment tabled by Independent TD Seamus Healy to give people the right to remain in dwellings where a landlord wants to sell 20 or more units was defeated.
The so-called 'Tyrrelstown amendment' referred to the families in the west Dublin suburb who were served with notice to vacate homes after they were bought up by a so-called 'vulture fund'.
Mr Coveney said he sought the advice of the Attorney General who suggested that figure be changed to 10.
The amendment was lost by 59 votes to 34 with 24 abstentions.
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