Legislation capping rent increases at 2% per year in Rent Pressure Zones has passed both Houses of the Oireachtas.

In a statement, Minister for Housing Darragh O'Brien welcomed the passing of the Residential Tenancies Bill 2021.

The new law also provides for tenancies of unlimited duration, a key reform committed to under the Government's Housing for All Plan.

The bill now goes to President Michael D Higgins for signing and the rent increase cap will apply immediately upon enactment.

The new cap will only operate when general inflation is higher than 2%.

In July, the Government linked rent increases to general inflation, but due to an unusually fast rise in inflation the Government moved to impose an overall cap.

This means rent increases in Rent Pressure Zones can only rise with inflation to a maximum of 2% per year.