John Lahart
Question:303. Deputy John Lahart asked the Minister for Justice if there are caps in place for commercial rent increases. [4168/22]
View answerThursday, 27 January 2022
Questions (303)
Written answers
I can inform the Deputy that there are currently no caps in place for commercial rent increases.
However, it is important to note that for leases entered into on or after 28 February 2010, for the purposes of carrying on a business, Section 132 of the Land and Conveyancing Law Reform Act 2009 prohibited upward only rent reviews and further detailed the applicable rules in this area.
In December 2011, the then Government took the difficult decision not to proceed with the commitment in the Programme for Government to abolish upward only rent reviews in so called "legacy leases", i.e., those entered into before 28 February 2010. In relation to these so-called "legacy leases", there was a substantial concern that any legislative scheme involving interference in the contractual relationships of private parties would be unlikely to withstand 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.
The Deputy may also wish to be aware that, in accordance with section 87 of the Property Services (Regulation) Act 2011, the Property Services Regulatory Authority (PSRA) maintains a Commercial Leases Database.
The purpose of the database is to provide transparency in the commercial rental market. It provides a valuable source of information for those about to enter into commercial leases or engage in rent reviews. The database (Commercial Leases Register) is available on the PSRA's website at:
https://www.propertypriceregister.ie/website/npsra/pprweb-com.nsf/page/ppr-home-en.