This is our Real Estate Update, a round-up of recent Irish and international legal and regulatory news. Updates in this edition include Budget 2025 implementing legislation; lapsed real estate-related bills following the dissolution of the Dáil and Seanad; the extension of rent controls for another year; the enactment of the Planning and Development Act 2024; developments on the decarbonisation of buildings and implementation of the revised Energy Performance of Buildings Directive; the England & Wales Law Commission's review of statutory tenancy rights; and recent Irish commercial and residential landlord and tenant cases. We also look at developments in other practice areas and sectors relevant to real estate investment.
Go to:
- Budget 2025
- Legislation
- PRS
- Housing
- Land Development Agency
- Real Estate Development & Construction
- Climate Change & Decarbonisation of Buildings
- Healthcare Investment
- Commercial Real Estate Investment
- Irish Case Reports
- Other Practice Area Developments
News
Budget 2025
Stamp Duty Measures – Clarification of New 6%
Rate
The Finance Act 2024 has brought some clarity to
the application of the 6% "mansion tax" rate of stamp
duty to residential property, confirming that purchases of three or
more apartments in an apartment block will not be subject to the 6%
rate.
Residential Zoned Land Tax – Finance Act Amendments
The Finance Act 2024 introduced further amendments
to residential zoned land tax (RZLT) (via
amendments to Part 22A of the Taxes Consolidation Act 1997). The
measures are summarised below.
Legislation
Lapsed Real Estate-Related Bills
The dissolution of the Dáil and Seanad on 8 November 2024 means the real estate-related bills set out below lapsed and will need to be reintroduced under the next government if they are to progress further.
- Residential Tenancies (Amendment) (No. 3) Bill 2024 (the "Right to Bid" Bill)
- Registration of Short-Term Tourism Letting Bill
- Energy Performance of Buildings Bill
- Heat (Networks and Miscellaneous Provisions) Bill (the last government approved the General Scheme in early November)
- Remediation of Defects in Apartments and Duplexes Bill
- Building Standards Regulatory Authority Bill
Companies Acts – Execution of Documents
Section 7 of the Companies (Corporate Governance, Enforcement and Regulatory Provisions) Act 2024 became operational on 3 December 2024.
Section 7 (which replaces the existing Section 43A of the Companies Act) provides that a company's seal and the signatures of those who countersign it may be on separate copies of the relevant agreement or deed with the aggregate considered as one instrument.
FDI Screening – New Year
Commencement
The Department of Enterprise, Trade and Employment has confirmed that the Screening of Third Country Transactions Act
2023 will commence on 6 January 2025.
For more information on the scope of the Act, aspects of which will
need to be considered by real estate clients when relevant assets
are transacted, read our Briefing: An Overview of the Upcoming Foreign Investment
Screening Regime in Ireland.
PRS
Rent Pressure Zones Extended to 2025
Part 25 of the Planning and Development Act 2024 extends rent
controls for another year to 31 December 2025. Current rent
pressure zone designations were due to expire on 31 December
2024.
New Rent Pressure Zone
The Local Electoral Area of Sligo-Drumcliffe has been designated
as a Rent Pressure Zone under the Residential Tenancies Acts from 5
December 2024 to 31 December 2025 (S.I. No. 675 of 2024).
Housing
Housing (Miscellaneous) Provisions Act 2024 Commenced
The Housing (Miscellaneous Provisions) Act 2024
comes into operation on 18 November 2024. The Act amends the Housing (Regulation of Approved Housing Bodies)
Act 2019 and the Affordable Housing Act 2021.
Approved Housing Bodies Regulatory Authority Annual Report
The Approved Housing Bodies Regulatory Authority (AHBRA) published its Annual Report for 2023, outlining progress made against its five strategic objectives in 2023.
Mortgage to Rent Scheme Changes
The Minister for Housing has announced changes to the equity limits in the Mortgage to Rent Scheme which apply from 1 November 2024.
Housing Agency Publications
The Housing Agency has published its Statement of Strategy 2025 - 2029 and its December 2024 Newsletter. 
Central Statistics Office Housing Hub
The Central Statistics Office (CSO) has created new housing hub described as a one-stop shop for
key information about the sector. The purpose of the hub is to
collate statistics on housing in Ireland from the CSO and other
public sector organisations in one location. The information is
broken down into four main themes: home building; home prices and
rents; cost of building homes; and housing features.
Land Development Agency
Increased Funding
The Housing (Miscellaneous Provisions) Act 2024
amends the National Treasury Management Agency (Amendment)
Act 2014 to provide for increased funding of €2.5 billion
for the LDA from the NTMA in certain circumstances. This represents
an increase of €1.25 billion from the figure of €1.25
billion previously approved under the 2014 Act.
Formation of OMCs by way of CLG
Part 26 of the Planning and Development Act 2024, commenced on 2 December 2024, now permits the LDA or a subsidiary DAC of the LDA to form a company limited by guarantee as an owners' management company for a multi-unit development.
The LDA or the subsidiary DAC can also become a member of the
CLG in accordance with the Multi-Unit Developments Act 2011.
Real Estate Development and Construction
Planning and Development Act 2024 Enacted
The Planning and Development Act 2024 was signed into law by the President on 17 October 2024. The parts commenced to date are summarised below.
Building Control Regulations Amendments
The Building Control (Amendment) (No.2) Regulations 2024 exempt works to Tier 1 buildings or Tier 2 buildings, in accordance with the Code of Practice for the remediation of Fire Safety Defects, published under Section 18A of the Fire Services Act 1981, from the requirements of the Building Control Regulations, specifically:
- Part II (Commencement Notices)
- Part III (Fire Safety Certificates)
- Part IIIA (Revised Fire Safety Certificates)
Such works are subject to the processes set out in the Code of Practice.
Apartment and Duplex Defects Remediation – Costs Process
The Minister for Housing is establishing a Retrospective Costs Pathfinder
for the Apartment and Duplex Defects Remediation Scheme to be
developed from a representative sample of multi-unit
developments.
Timber in Construction Reports
The Timber in Construction Steering Group has published two reports:
- Global Policies Influencing the Greater Adoption of Timber in Construction, which makes recommendations on the best practice in raising awareness of the benefits of using timber and the importance of long-term carbon storage
- Timber in Construction Academic Survey, which makes recommendations on the academic supports needed in Ireland to support greater use of timber in construction
Infrastructure Projects Pipeline
Minister for Public Expenditure and Reform, Paschal Donohoe TD,
has published the Prospects 2024/2025 report. The report aims to
provide enhanced visibility on Ireland's priority
infrastructure in the coming years, which will help construction
and built environment firms plan commercial bids for these major
infrastructure projects.
Climate Change & Decarbonisation of Buildings
District Heating Legislation
The General Scheme of the Heat (Networks and
Miscellaneous Provisions) Bill has been published to provide a regulatory framework
for district heating.
Energy Performance of Buildings Directive – Commission Guidance
The Commission has issued the first of a series of guidance documents to support Member States in transposing and implementing the revised Energy Performance of Buildings Directive into national law.
The guidance relates to Article 17(15) which has an earlier transposition date of 1 January 2025 and requires the phasing out of financial incentives for stand-alone boilers powered by fossil fuels.
Member States must transpose the Directive into national law by 29 May 2026. See our Q&A briefing here.
Energy Performance of Buildings Directive – Installing BACS
The European Union (Energy Performance of Buildings)
Regulations 2024 bring forward by a year (to 31 December 2024)
the requirement that an existing building (other than a dwelling)
shall, where technically and economically feasible, be equipped
with a building automation and control system (BACS) if: (i) the
effective rated output for heating systems or systems for combined
space heating and ventilation in the building is over 290kW; or
(ii) the effective rated output for systems for air-conditioning or
systems for combined air-conditioning and ventilation in the
building is over 290kW. The meaning of building automation and
control system is also set out.
Energy Performance of Buildings Directive – Review of Building Regulations Technical Guidance
The Department of Housing, Local Government and Heritage is consulting until 3 February 2025 on a review
of Technical Guidance Document L (Conservation of Fuel and Energy)
Dwellings, and Technical Guidance Document F (Ventilation).
SEAI National Energy Projections
The SEAI's National Energy Projections 2024
report explores future trends for energy use in Ireland and
assesses how we are likely to perform against our national Climate
Action Plan and EU climate and energy targets.
Retrofitting
A new €50 million Business Energy Upgrades Scheme is intended to
support small and medium sized businesses to carry out energy
efficiency upgrades. The scheme is intended to support both
building owners and occupiers in the SME sector to address energy
costs and reduce emissions in buildings.
Healthcare Investment
Nursing Homes Regulations
Regulations have been made to strengthen the regulatory framework
for nursing homes.
Commercial Real Estate Investment
RICS Valuation – Global Standards (Red Book)
The Royal Institution of Chartered Surveyors (RICS) has announced significant updates to its Valuation – Global Standards, known as the Red Book. The new edition, set to take effect on 31 January 2025, includes key upgrades such as: alignment with the latest International Valuation Standards; significant adaptations for fast developing areas such as technology and Environmental Social and Governance considerations; integration of new data on modelling and methods and a reformed format for Valuation Technical and Performance Standards.
UK Landlord and Tenant – Tenant Renewal Rights Consultation
Those who operate in the UK real estate market may be interested
to hear about the England and Wales Law Commission's
consultation on the Landlord and Tenant Act 1954.
Cases Round Up
Irish Cases
Commercial Landlord and Tenant – Exclusivity Breach Upheld
The Court of Appeal has upheld the High Court's decision in
Rexbay Limited v McCann & Ors[2024] IECA 289 that the owners of a shopping
centre breached an exclusivity clause in a Starbucks lease by
allowing a competing coffee franchise to operate within another
leased unit in the centre.
Commercial Landlord and Tenant – Statutory Renewal Rights
Our October update highlighted the case of Howard and Ors v Crown Paints Ireland Limited [2024] IECC 10 which illustrated the importance for landlords of progressing statutory renewal claims in a rising market (see our Insights Briefing: Mind the Gap – Implications for Landlords of Tenants Withdrawing Statutory Renewal Claims - Arthur Cox LLP). We understand that the Circuit Court's decision has been appealed to the High Court and we await the outcome.
Commercial Landlord and Tenant – Court-Determined Rent on Lease Renewal
The Circuit Court's decision in Bewley's Café Grafton Street Limited v RGRE Grafton Limited[2024] IECC 19 will be of interest to valuers. The decision focuses on how the court should fulfil its role under the Landlord and Tenant (Amendment) 1980 Act in calculating the rent for a statutory lease renewal. Much of the judgment weighs up the expert evidence and comparables for determining the rent to be paid by Bewley's with the court ultimately deciding that the rent should be midway between both experts' recommendations, which meant that the rent under Bewley's expired lease was halved.
Real Estate Development & Construction – Certificates of Compliance on Completion
The High Court has quashed a decision by a County Council not to
register a certificate of compliance on completion under the
Building Control Regulations 1997. The judgment in Dromaprop
Ltd v Leitrim County Council[2024] IEHC 234 provides helpful guidance on
the Regulations.
Residential Landlord and Tenant/PRS – Recent RTB Cases
The High Court has set aside three RTB Tribunal determination
orders and provided guidance on the RTB's powers and the
interpretation of certain sections of the Residential Tenancies Act
2004 (RTA).
Other Practice Area Developments
Updates in our November 2024 and December 2024 Horizon Scanner: Infrastructure, Construction & Energy include:
| Sector | Highlights |
| Construction & Engineering | November
|
| Energy | November
|
| Environment and Planning | November
|
| Transport | December
|
Updates in our November 2024 Finance Horizon Scanner include:
- Funds Sector 2030 final report/section 110 companies.
- Guidelines on funds names using ESG or sustainability-related terms.
Our December 2024 Finance Horizon Scanner includes an update on:
- Sustainable Finance Week Ireland 2024.
This article contains a general summary of developments and is not a complete or definitive statement of the law. Specific legal advice should be obtained where appropriate.
