Dáil Éireann debate -
Thursday, 20 Feb 1997

Vol. 475 No. 3

Written Answers. - Ground Rents.

Thomas P. Broughan

Question:

98 Mr. Broughan asked the Minister for Justice the current position in relation to the payment of ground rents; and the plans, if any, she has to abolish this medieval encumbrance on householders and other property owners. [4752/97]

Minister for Justice (Mrs. Owen)

The Landlord and Tenant (Ground Rents) Act, 1978 prevented the creation of new ground rents on dwelling houses.

Part III of the Landlord and Tenant (Ground Rents) Act, 1978 — the provisions of which were continued in force indefinitely by the Landlord and Tenant (Ground Rents) (Amendment) Act, 1987 — was introduced to provide that owner-occupiers of dwelling-houses would have a special procedure available to acquire readily and relatively inexpensively the fee simple in their property. Successive Ministers for Justice have been of the view that Part III of the Act has worked well in practice — as is evidenced by the fact that over 65,000 householders have availed of the scheme to buy out their ground rents.

Our landlord and tenant code also provides procedures for buying out ground rents other than those which relate to dwelling-houses and I have no proposals for change in that area.

As I have informed the House previously, I am examining at present the measures which would be necessary to give effect to a proposal to introduce legislation to abolish ground rents as a specific lien on residential property and convert them into normal commercial debt. Complex issues — including constitutional issues — arise in this area and I am not yet in a position to say when my examination of this matter will be concluded. In the context of that examination I will, of course, be prepared to take into account any suggestions for changes in the law in this area under the criteria that they would be constitutional, prove workable in practice, represent a real improvement on the existing position and not involve additional costs for the Exchequer.