The 2% cap on rent increases could “potentially” be extended nationwide, the Housing Minister has told Newstalk Breakfast.

Rent Pressure Zone legislation was updated twice this year.

During the summer, new rules were introduced meaning rent increases could be no higher than the general inflation recorded in the Harmonised Index of Consumer Prices (HICP).

Shortly after that change was introduced however, inflation began to increase steeply – forcing the Government to step in and last week, officially cap increases at 2% whenever inflation is running higher than that.

The zones currently cover 76% of homes in Ireland but on Newstalk Breakfast, Housing Minister Darragh O’Brien said they could soon be extended nationwide.

“We are looking at those 24% outside the Rent Pressure Zones and that has to be looked at because I think outside those RPZs, quarter on quarter, we are looking at about a 10% increase and that is something I am looking at, at the moment,” he said.

He said he is currently seeking legal advice on a nationwide system.

“Potentially I do [see a national system of rent controls] but I am seeking legal advice on that and I have to operate, obviously, within the advice I get,” he said.

He said the rental crisis is due to a lack of supply.

“Rent is climbing and rent is too high and we have seen double digit increases outside the Rent Pressure Zones so that is something I am looking at right now,” he said.

“It is about supply and we have got to get supply up because we have seen the private rental market shrinking as well and that is a real issue.

“That is affecting rents and there is more people competing for single properties and that is a problem so, am I looking at other measures? Yes, I am.”

The Housing Minister also said around 25,000 new homes will be built next year – up from just over 20,000 this year.