Dáil Éireann debate -
Thursday, 17 Dec 1998

Vol. 498 No. 6

Written Answers - Ground Rents.

Noel Ahern

Question:

158 Mr. N. Ahern asked the Minister for Justice, Equality and Law Reform the plans, if any, he has for the abolition of ground rent on domestic dwellings; if it can de done by order or if legislation and a constitutional amendment is necessary; the regulations in this regard; the process a householder should take who wishes to purchase out the ground rent; if the ground landowner must agree; the range of financial consideration involved; if he will clarify the situation in this regard; and if he will make a statement on the matter. [28247/98]

Minister for Justice, Equality and Law Reform (Mr. O'Donoghue)

The Landlord and Tenant (Ground Rents) (No. 2) Act, 1 978, already provides a statutory scheme for the acquisition of the fee simple by the owners of dwelling houses. Part Ill of the No. 2 Act, provides a special procedure, operated at low cost by the Land Registry, whereby owner-occupiers of dwelling houses may acquire readily and relatively inexpensively the fee simple in their property. The purchase price in most cases at present is about 13 times the ground rent. The Act contains provision for the determination of applications for the purchase of the fee simple in cases where the consent of all the necessary parties is not forthcoming. In such cases the Registrar of Titles will determine the application by arbitration. The Act also makes provision for the circumstance that the ground rent landlord cannot be found. There is no obstacle to a tenant negotiating directly with the owner of the ground rent for its purchase without reference to the (No. 2) Act.

A Bill entitled the Landlord and Tenant (Ground Rent Abolition) Bill passed Second Stage in the Drill on 19 March, 1997. The detail of this Bill is being examined in my Department at present, in consultation with the Attorney General and the Registrar of Titles, particularly from the point of view of the constitutionality and practicality of its proposals in relation to land law generally and in particular the land registration system. A difficulty, which successive Governments have accepted over the years, is that abolition of ground rents without appropriate compensation would not be in keeping with constitutional requirements. Given the complexities involved, I am not yet in a position to indicate when the examination will be completed, but any proposals which may emerge will be announced in the usual way.