asked the Minister for Justice if he is aware that a large number of new ground rents have been created in recent months in anticipation of legislation on the subject, and if he will take action to halt this abuse, with retrospective effect.
Ceisteanna—Questions. Oral Answers. - Ground Rents.
4.
While I accept that some new ground rents have been created since the Bill to prevent the creation of such rents on dwelling-houses was initiated, it is not possible to get any precise information as to the number of such rents. However, the information available to me would suggest that in anticipation of the legislation the practice of selling new houses in fee simple has largely replaced the former practice of selling them leasehold.
The legislation in question is, as the Deputy is aware, framed in terms of voiding ground rent leases made after its passing. It would not be appropriate that a provision of this kind should operate retrospectively. However, lessees under the leases to which the question relates have the right to acquire the fee simple at any time.
Is this not clearly an abuse of the attempt by the Oireachtas to deal with the abuse of ground rents? Would it be possible for the Minister to include a section providing that any ground rents created after the introduction of the Bill would not be accepted?
Some builders may have no choice but to continue to give leaseholds until the Bill becomes law because they may have only leaseholds themselves. Under the Bill they would be able to get a fee simple and to pass it on. Until the Bill becomes law the sale of the leasehold is lawful and cannot be made unlawful retrospectively.
Has the Minister done any research into this matter? I have seen two instances recently of the kind mentioned by Deputy Browne. There are builders proceeding with ground rents.
Perhaps for the reasons I have just given in my reply. Deputy Enright will appreciate that it is extremely difficult to obtain factual formation in this area and I would hope to have the legislation enacted as quickly as possible.