Update 12.47pm: The Dáil will try again on Friday to pass legislation to put rent certainty in place before the New Year.

Last night a problem emerged when an error was noticed in the legislation that would have resulted in rent rises of 8% in the pressure zones of Dublin and Cork rather than the intended 4%.

Housing Minister Simon Coveney moved quickly to move an amendment to ensure the issue was fixed.

However, after further concern was raised by Opposition TDs, he promised to look again at the legislation overnight.

"If it's helpful to the House, we will look at the wording that we have, and make sure that it is doing what we want it to do, for the morning," he said.

"We did put the amendment in place this evening when it was raised by Opposition spokespeople, I'm happy to look at that again overnight to make sure that it's right, given the issues that people have raised - I've no issue with that."

My amendment to Simon Coveney's amendment to his own amendment to his own bill submitted once more tonight. This is a farce. #securerents — Jan O'Sullivan (@JanOSullivanTD) December 16, 2016

Update 10.20pm: Housing Minister Simon Coveney has tonight moved to correct a drafting error in his legislation to impose rent caps.

The error was exposed by Sinn Féin and Fianna Fáil and would have seen the 4% in the Dublin and Cork pressure zones doubled to 8% at the end of the two-year freeze.

Simon Coveney has now put forward an amendment to correct the error, but opposition TDs say he may have made it worse.

The housing minister says he never wanted to see any tenant subjected to more than a 4% rise.

"If you haven't had a rent review for two years, there is the potential for the first time you get a review in a rent pressure zone, a higher-than-4% figure, because if it's 4% per annum, you haven't had a rent review for two years, then it could be an 8% increase," he said.

"And that, of course, was never the intention, and so this is a drafting error that I'm anxious to correct."

Earlier

A deal has been reached over the Government's plans for rent caps, which will see the 4% limit for rent increases remain in place.

The so-called rent "pressure zones" where the cap looks set to be extended to include Limerick, Galway and Waterford cities in the new year, as well as towns in Louth, Meath, Kildare and Wicklow, under a compromise deal reached with Fianna Fáil.

The Dáil debate on the measures was postponed for almost five hours while the agreement was reached, following rows, crises and the possibility of a vacuum leaving renters open to any hike in the new year.

The legislation will not automatically extend the rent pressure zones beyond Cork and Dublin - but minister Simon Coveney is committing to look at other cities and towns in the Dublin commuter belt early in the new year.

People Before Profit TD Richard Boyd Barrett said the 4% cap was far too high.

In the Dáil he said: "You are doing nothing except pandering to the insatiable greed of landlords, of vulture funds and property speculators, and care nothing about the tens of thousands of people who literally fear for the roof over their head."

He also called it a "dity deal between Fianna Fáil and Fine Gael".

A debate on the legislation will continue until 10pm tonight and is likely to continue tomorrow afternoon.

Chair of housing charity Threshold, Aideen Hayden, said a rent certainty model is needed.

"We have been arguing for a long time for a rent certainty model in Ireland," she said, "in other words that people have some idea what's going to happen (with prices) over the next number of years."

A Sinn Féin TD says the way the government has drafted the rent legislation would result in an 8% for renters in year one, rather than 4%.

The legislation uses a formula to calculate the rent increase in rent pressure zones based on when the last review was.

It would result in anyone coming out of the two year freeze facing a doubling of the proposed rise.

Deputy Eoin O'Broin is questioning whether it's an error or intended to give even more to landlords.

"What that actually means that in the first year of this equation is the basis of the rent review it would be an 8% increase, not a 4% increase.

"Now, that could be a drafting error, if it is then we have a serious problem because you're asking us to vote on something here today which is actually going to lead to double the rate of increase than what you've said, or it is by design."

“It’s a bad way to do legislation. To launch a strategy on Tuesday, not give the opposition a real opportunity to scrutinise it and then to try and rush it through in the last sitting day of the Dáil before Christmas, is not the way to make such significant change. Who’s going to lose? Hard pressed renters.”