Impact of new Residential Tenancies legislation on the PBSA sector

The Residential Tenancies (Miscellaneous Provisions) Act 2026 was signed by President Catherine Connolly on 24 February. 

This is the first time PBSA or Student-Specific Accommodation (SSA) has been truly recognised as a distinct asset class, and this is to be welcomed. The recognition of this asset class has resulted in a more favourable shorter rent reset period for SSA landlords. In respect of new tenancies created on or after 1 March 2026, after 6 years a landlord may reset the rent to market rent. However, in the case of SSA, this period is reduced to 3 years. This shorter time period creates a balance between providing certainty to students during their degree cycle while recognising the requirement for investors to keep apace with market rates. 

The legislation further provides that the first reset of rent cannot occur for 3 years. Accordingly, existing schemes cannot reset their rent until 1 March 2029 at the earliest. This does not align with the academic year, and it is a regrettable, if perhaps unintended consequence of the date chosen by Government to enact this new legislation, that existing landlords of SSA will be unlikely able to reset their rent until 2030, given that SSA is marketed each November for the following academic year.

To incentivise new development in the sector, and indeed more widely in the Private Rented Sector (PRS) market, the restriction on rent increases to the lower of CPI or 2% per annum, does not apply to SSA or apartment complexes in respect of which a commencement notice was submitted and registered with the Building Control Authority on or after 10 June 2025. This positive step means that landlords of new student accommodation and new apartment complexes can increase rents in line with CPI, thereby allowing higher increases in high inflationary cycles. For existing SSA, CPI-linked uplifts will be capped at 2% in times of high inflation.

It remains to be seen how the international investment market will respond to these changes; however given the undisputed strength and depth of demand for student accommodation in Ireland, it is widely anticipated that the rental stability created will promote a more attractive and viable investment environment for PBSA and PRS. We look forward to working with investors and developers of PBSA in the delivery of much needed additional student beds.

For more information, please contact Clair Cassidy from the Property team at Byrne Wallace Shields LLP.