Why? What is happening after 28th Feb 2026?
The Government has announced changes for rental properties in Ireland that will govern rules for the private rented sector regarding:
- Rent increases and ending a tenancy
- Security of tenure — a tenant’s right to stay in rented accommodation for a set amount of time — up to 6 years
What is the Fair Deal Loan Scheme?
The nursing home loan is an optional part of the fair deal scheme and advances you sums to pay your nursing home costs which are secured against the value of your primary residence.
How will this affect Fair Deal applicants?
Often, due to the exclusion of the rental income from the fair deal assessment, the property is then rented once the occupants move into the nursing home. However, the ‘game changer’ is that from 1 March 2026, all new tenancies will last for 6 years.
So, if the property has availed of the Fair Deal Loan Scheme, the loan must normally be repaid with 12 months of the applicant’s death even though there may be a difficulty in selling a property with tenants in place for potentially up to 6 years.
How will this affect beneficiaries of the deceased person’s property?
For CAT purposes, the property and other assets of the deceased are usually assessed on the date of Probate and NOT when the property is sold. As such, the beneficiaries may be liable to raise funds to pay their share of the CAT due at 33% of the value of the property (less relevant exemptions) within a maximum of 12 months of the Probate date. The new rules may make the property difficult to sell with tenants in place. Additionally, beneficiaries may have to accept a lower price as the new rules may exclude owner-occupiers from the market for a rented property.
If I or my family may be affected, what should I do next?
Proper planning is essential to evaluate your options.
