Landlords who agree to keep rent at affordable levels will be offered a series of sweeteners under radical new plans being considered by the Government.

Property owners are set to be encouraged to enter “rent certainty leases” with their tenants in return for tax breaks and other financial incentives.

The plans by Environment Minister Alan Kelly are intended to beef up tenants’ rights and to tackle spiralling rent prices, particularly in Dublin.

The Government’s ‘carrot and stick’ approach to reforming the rental market will also see the introduction of a suite of measures aimed at making it more difficult for landlords to increase rent.

Among the measures being examined include extending the notice period for introducing a rent hike, as well as placing a requirement on landlords to produce details of three comparable properties in order to justify an increase.

The Irish Independent has learned that the measures, which are at an early stage, also involve offering a series of incentives to landlords who agree to keep rents down.

“Housing supply, particularly in relation to social housing, was the first issue that needed to be tackled. Now the focus will switch to the rental market,” a Government source said last night.

Mr Kelly says he wants to ensure rent bills do not go beyond “acceptable” levels.

The news comes as ministers today hold a special Cabinet meeting on jobs, as well as addressing issues surrounding planning and housing.

The meeting will hear a range of actions aimed at stimulating the building industry as part of efforts to provide more houses. These include new moves to discourage owners of zoned land from delaying development.

Tourism Minister Paschal Donohoe will also present an ambitious set of targets aimed at expanding visitor numbers and employment in the sector over the next decade.

Employment will take centre stage, with Taoiseach Enda Kenny set to tell ministers that they should target the creation of 40,000 new jobs in 2015.

The Coalition is also expected to agree on the publication of a 'Spring Statement' outlining a revised set of priorities in the coming weeks.

But the plans to tackle spiralling rents will be especially welcome among Government backbenchers.

Mr Kelly is being guided by a report commissioned by his predecessor Jan O'Sullivan, which presented a series of proposals to reform the rental market.

The report - by DKM Economic Consultants - warned against the introduction of full-scale rent controls as it could lead to tens of thousands of rented properties leaving the system.

However, it recommends the introduction of special rent certainty leases, which could have a set term of at least five years.

The report suggests a series of incentives for landlords who enter agreement with tenants, including capital gains tax relief once their property is sold.

It also suggests reducing commercial rates for residential units above commercial premises and offering interest relief to landlords who let to rent supplement tenants.

However, any decision to offer tax breaks or other incentives to landlords would require approval from Finance Minister Michael Noonan.

While the issue is not scheduled to be brought up at today's Cabinet meeting, a formal announcement of Mr Kelly's strategy is expected shortly.

The Irish Independent understands that a central component of Mr Kelly's plans will be a major beefing up of tenants' rights through regulatory measures.

This could include extending the notice period for rent increases to three months - allowing tenants more time to assess their options and seek alternative accommodation.

Such a move would also give a tenant greater manoeuvrability to "collate data" if they wish to seek a review into the rent hike, according to the report presented to the minister.

The consultants also recommended that landlords should provide details of three comparable properties to justify the proposed rent hike. This would ensure that landlords cannot try and increase rent based on vague "trends in the market".

The proposals are also expected to involve providing tenants with greater details of their rights, and allowing more flexibility to challenge rent increases deemed excessive.

The measures are aimed at ensuring that landlords do not attempt to hike rents based solely on trends in the property market.

Speaking to the Irish Independent, Mr Kelly said "everything is on the table" in relation to new measures involving tenants and landlords.

"The rental market is a huge concern. From an immediacy point of view, that is the biggest issue," he added.

Irish Independent