Rent cap deal under threat as coalition clash over request to extend deal to counties such as Kildare

The stability of the Fine Gael-led minority government was thrown into crisis last night after Fianna Fáil refused to row in behind Housing Minister Simon Coveney's plans to introduce a rent cap to Dublin and Cork.

Under Coveney's new deal, landlords in Dublin and Cork would be unable to increase the cost of rent by any more than 4% each year, though Fianna Fáil have requested that the deal be extended to commuter counties such as Kildare, Louth, Meath and Wicklow.

The smaller government party also insisted on halving the amount on the cap to just 2%, but Coveney -with the backing of Taoiseach Enda Kenny- has refused to budge on the original plan.

Fianna Fáil have accused their partners in government of 'messing with people's lives', while a debate on the matter was pulled from the agenda for today's Dáil proceedings.

There are fears among housing agencies that some landlords will dramatically increase the cost of their tenants' rents by imposing new charges. It is thought that some landlords may insist on their tenants paying the Local Property Tax, charging for parking spaces and imposing administration charges to cover the cost of advertising the property.

Towns all over Kildare, but particularly in the north of the county, have seen a remarkable increase in the cost of rent over the last three years, and it was hoped that a rent cap may be extended to this area of the country. But that now seems off the table as Fine Gael continue to hold firm on their position in relation to the matter.