Vol. 550 No. 1
2 Mr. Gilmore asked the Minister for the Environment and Local Government his proposals to protect successor tenants who will be exposed to eviction and increased rents following the end of controls in 2002; his plans to introduce enhanced rent assistance for such tenants; his proposals to provide protection against eviction; and if he will make a statement on the matter. [7289/02]
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.
Will the Minister acknowledge that in July this year several hundred successor tenants will be exposed to eviction and huge increases in their rents? Many of these tenants are elderly and they are terrified of what is facing them. When will the Minister make an announcement in relation to the proposed new rent allowance scheme for those tenants? Will he bring the Housing (Private Rented Sector) Bill before the House in sufficient time to provide new legal protection for those tenants so they will not be at risk of losing their homes in July?
The proposals for rent assistance in the cases referred to by the Deputy are being prepared in consultation with the Department of Social, Community and Family Affairs and we hope to have them in a matter of weeks. I will keep the Deputy informed in that regard. I have been aware of this problem since 1997. I am working to ensure that the bleak future described by the Deputy will not occur. We have carried out a number of surveys and sent out questionnaires on this issue. The results suggest that just under 400 successor tenants will be affected by the changes that come into effect in July. Only those who have been successor tenants for five years or more will be immediately affected and the survey indicates that they number less than 200. Nevertheless, whether it is 200 or 2,000, we will work to alleviate any distress to them.
With regard to security of tenure, some of those tenants who will not be able to exercise their rights before the courts might find themselves exposed to eviction notices in July. Has the Minister any legislative plans to provide protection for them against losing their homes?
There are no proposals for such legislation. Our advice is that because the Act was time related, which arose because a previous Act was struck down as unconstitutional, if we attempted to continue the current situation, it would be struck down as unconstitutional as well.
Will the Minister make that legal advice available?
I will give the Deputy a note outlining the legal advice. I might be precluded from giving the actual legal advice.
