The passage of legislation underpinning the Government's rental strategy through the Oireachtas in its present form is in serious doubt after Fianna Fáil raised concerns about a number of elements in it.
Minister for Housing Simon Coveney earlier announced plans to limit how much landlords could increase rents in designated areas; with the central proposal a 4% annual limit on rent rises in designated areas.
The system would last for a maximum of three years.
Following a meeting of the party's frontbench tonight, Fianna Fáil spokesperson on housing, planning and local government Barry Cowen said he was open to further discussions with Mr Coveney to address the outstanding issues.
However, he said Fianna Fáil had "genuine concerns" with elements of the strategy.
He said Fianna Fáil was anxious that a limit on rent increases would apply to other cities apart from Dublin and Cork.
The party wants Galway, Limerick, Waterford and large population centres surrounding Dublin and Cork city also included from the outset.
Mr Cowen also stated tax incentives for landlords should be in the package and he added they were not satisfied that the proposed 4% annual limit on rent increases in designated rent pressure zones was appropriate.
It is understood members raised the prospect of introducing a 2% limit.
At the launch of the strategy, Mr Coveney said he was not able to be flexible if fundamental changes were required.
Minister of State for Housing and Urban Renewal Damien English tonight ruled out any change to,the proposed 4% cap on rent increases.
Speaking on RTÉ's Prime Time, he said the cap had been decided by Cabinet and would not be altered despite demands from Fianna Fáil.
Mr Coveney outlined his plans for rent pressure zones to Cabinet this morning.
The limits will first be introduced in the so-called rent pressure zones of Dublin and Cork city.
The areas meet two designated criteria: that annual rents have risen by at least 7% in four of the past six quarters; and that the average rent is above the national average in the past quarter.
The measure will come into effect when tenants in the designated areas have their rents reviewed or new tenancies begin.
In other areas, rents can only be increased every two years under a provision to expire in 2019.
Properties that are new to the rental market and those that have been substantially refurbished will be exempt from the 4% rent increase limit to ensure supply
Mr Coveney said the Residential Tenancies Board would be in a position to come back to him next March on the possibility of other areas being designated as rent pressure zones.
Where the rental market has stabilised, some areas will be removed from the list of special designated rent-free zones.
Mr Coveney said that he was trying to get a balance and respond in a sensible and proportionate way that would also incentivise supply.
He said linking rent rises to inflation would have a negative impact and disincentivise people to enter the rental market.
Other measures announced in the strategy include fast-tracking the termination of a tenancy where there has been a failure to pay rent.
There are also enhanced protections for tenants where receivers are appointed to repossessed buy-to-lets.
It also proposes allowing tenants to remain in-situ where landlords propose to sell multiple units within a large development at the same time,
Rent pressure zones are being introduced with immediate effect in the four Dublin Local Authority areas and in Cork city.
Rent increases in these areas will now be capped at 4% a year for the next three years.
The proposal comes amid debate that rent increases or reductions should be linked to the consumer price index while others oppose intervening in the market.
The most recent report from the Residential Tenancies Board showed that rents are still rising.
In the third quarter of 2016, monthly rents grew by 2.3%, although this is marginally slower than the previous three months.
A recent survey by the Simon Community also found that 80% of the rental properties available that it reviewed were beyond the reach of people receiving State housing benefits.
Mr Coveney’s proposals on the rental sector examine key areas, including supply and rent security and include 'Build to Rent' developments, the accelerated roll-out of 'Repair and Leasing' as well as 'Buy and Renew' initiatives to bring unused capacity back to the market.
Housing charity Threshold has said there has been a 26% rise in cases of rent increases nationwide.
It said hundreds of people contact it from around the country every day with stories of rapidly rising rents and difficulty finding affordable housing.
Launching its annual report for 2015, the charity said there was a 54% increase in the number of people calling its helpline.
Threshold says one in five households are in private rented accommodation in Ireland and disproportionate rent rises are pushing hundreds of families into homelessness at an accelerated rate.
The Residential Landlords Association says the measures would be very difficult to implement while Threshold is concerned about avoidance of the regulations.
Kelly says plans will not provide certainty
Former housing minister Alan Kelly said Mr Coveney's plans will not provide rent certainty.
Speaking on RTÉ's News at One, Mr Kelly said the scheme would allow a 4% yearly rent increase over three years in Dublin and Cork - well above inflation and the consumer price index.
The Labour Party TD added that it will be difficult to administer the plans, describing it as a bureaucratic nightmare.
He said he does not believe Fine Gael wants to deal with rent certainty, saying the plans amount to "a hotchpotch way of trying to do something."
He said there are huge rental issues across Ireland, adding that it does not make sense why Dublin and Cork are the only cities being looked at.
