Under the provisions of the Housing (Private Rented Dwellings) Act, 1982 successor tenants are guaranteed a minimum five years tenancy, even where the period extends beyond 25 July 2002. Where the tenancy of a successor tenant exceeds five years, I am advised that such tenants may be entitled to claim a long equity lease of up to 35 years under Part II of the Landlord and Tenant (Amendment) Act, 1980. If the landlord is unwilling to grant such a lease, the tenant may apply to the Circuit Court to determine a tenant's entitlement and also to set the rent and other tenancy terms in the absence of agreement between the parties.
Acquisition of a long equity lease provides significant benefits for tenants. They acquire the right to retain possession of the dwelling and are subject to rent reviews at not less than five yearly intervals. The court, in determining the rent, has regard to market value but also takes into account the addition to the letting value of any improvement works carried out to the dwelling by the tenant. My main area of concern, as I am sure is the Deputy's, will be to avoid the creation of hardship for low income successor tenants moving from a position where rents are set by the rent tribunal – taking into account the means of the tenant and the landlord – to a position where the rent approaches the rates applicable in the open market.
Under the present terms of the special rent allowance scheme operated by the Department of Social, Community and Family Affairs for tenants in this sector, entitlement to rent allowance ceases when protection under the 1982 Act ceases. Proposals for an appropriate form of means related rent assistance in such cases are being prepared in consultation with the Department of Social, Community and Family Affairs and it is intended to seek Government approval of these within the coming weeks.