ESRI finds rent pressure zones in Galway have helped to limit scale of rental inflation

Galway Bay fm newsroom - The adoption of rent pressure zones in urban areas including Galway have helped to limit the scale of rental inflation since their introduction in late 2016.

Rent Pressure Zones were introduced in a bid to curb an overheating rental market, setting a 4% limit on rent increases in certain areas.

New research by the ESRI states it's likely rental inflation would accelerate further without such measures.

However, it states international evidence suggests that while these type of measures are justified in many contexts, strict price caps risk lowering supply and upkeep in the medium term.

Associate Research Professor with the ESRI, Dr Conor O'Toole, says overall, the 4% limit has had a stabilising effect on the market...