Dáil Éireann debate -
Thursday, 6 Dec 2001

Vol. 546 No. 1

Written Answers. - Private Rented Accommodation.

Michael D. Higgins

Question:

22 Mr. M. Higgins asked the Minister for the Environment and Local Government the progress made to date regarding the implementation of the Government's response to the recommendations of the Commission on the Private Rented Sector, published in January 2000; the commitments published to date; the commitments to be published; if a timetable has been set for the outstanding commitments; and if he will make a statement on the matter. [31109/01]

Minister of State at the Department of the Environment and Local Government (Mr. Molloy)

Details of the Government's proposals for major reforms in the private rented sector were announced on 5 January 2001 in response to the recommendations contained in the report of the Commission on the Private Rented Residential Sector. The Government accepted all of the commission's recommendations other than those relating to capital acquisitions tax and with some modification of those relating to interest deductibility and capital gains tax rollover relief. It was also decided that landlords should only have to comply with one registration requirement rather than the dual requirement recommended by the commission.

Substantial progress has since been made in implementing the commission's recommendations. A number of measures relating to tax and supply incentives were introduced in the Finance Act, 2001. These included a reduction in the stamp duty rate for new residential investment properties, tax relief on rental income in respect of refurbishment capital expenditure, the re-introduction of interest relief on borrowings in the case of certain properties meeting specified conditions and rollover relief on capital gains tax in respect of qualifying reinvestment in the sector.

The Government announcement envisaged a two year timeframe to reach the stage of enacted legislation and indicated that the Private Residential Tenancies Board would be set up on an ad hoc basis pending the enactment of the legislation to establish it statutorily. My Department is working to this schedule and, accordingly, the ad hoc board was activated in October. At present, it is in the process of setting up its operational procedures and structures and it expects to be in a position in early 2002 to commence accepting disputes referred to it on a voluntary basis.

Implementation of the other reforms approved by Government requires new legislation, including amendments to the existing landlord and tenant legislative code. The general scheme of a Bill, which I hope to be in a position to submit for Government approval early in the new year, is being finalised in collaboration with the Department of Justice, Equality and Law Reform, which has responsibility for the landlord and tenant legislative code. This, when enacted, will allow for the implementation of a four year security of tenure measure, revised tenancy termination provisions with graduated notice periods, explicit tenancy obligations applying to landlords and tenants, rent setting and review provisions and new tenancy registration requirements. It will also provide on a statutory basis for the Private Residential Tenancies Board, which will be available to deal with all disputes arising between landlords and tenants and provide advice and information in relation to the rented sector.

Question No. 23 answered with Question No. 18.