Dominic Hannigan
Question:501. Deputy Dominic Hannigan asked the Minister for Justice and Equality his plans to help deal with the problem of upward only rent reviews; and if he will make a statement on the matter. [35972/13]
View answerThursday, 18 July 2013
Questions (501)
Written answers
As the Deputy will be aware, I have legislative responsibility for aspects of landlord and tenant law. In that context, during the course of 2011, I sought to develop proposals which would give effect to the commitment in the Programme for Government to legislate to end upward-only rent review clauses for leases entered into prior to 28 February 2010. As is well known, in December of that year the Government took the difficult decision not to proceed with that commitment. It will be recalled that the background to this decision was a substantial concern that any legislative scheme involving interference in the contractual relationships of private parties would find it extremely difficult to survive a Constitutional challenge. In addition, the Government was advised that any model proposed would require the payment of compensation to landlords whose rights were infringed in order to ensure that the proposal would be compatible with the Constitution and with the European Convention on Human Rights. As I have indicated in my replies to previous Parliamentary Questions on the subject of upward only rent review clauses, there are no plans to re-examine the decision which was taken in 2011 not to proceed with legislation in relation to this matter.
On a related issue, it is widely acknowledged that one of the difficulties in regard to rent reviews is the absence of readily accessible, accurate information in order to determine the market rent payable in respect of comparable commercial properties. The Property Services (Regulation) Act 2011 provides for the establishment and maintenance of a Commercial Leases Database by the Property Services Regulatory Authority. While there have been some delays in establishing this Database work is at a very advanced stage to ensure that it will be operational shortly.