Dáil Éireann Debate, Tuesday - 9 June 2015
1099. Deputy Paul Murphy asked the Minister for the Environment, Community and Local Government his plans to introduce regulations to oblige banks which repossess properties that have sitting tenants to honour existing leases; and if he will make a statement on the matter. [17577/15]
Amharc ar fhreagraThe Residential Tenancies Act 2004 regulates the landlord-tenant relationship in the private rented residential sector and sets out the rights and obligations of landlords and tenants relating to, inter alia, security of tenure and the termination of tenancies. The Private Residential Tenancies Board (PRTB) was established as an independent statutory body under the Act to operate a national tenancy registration system and to resolve disputes between landlords and tenants.
In circumstances where a receiver is appointed to a landlord's interest in a dwelling it is essential that the rights of tenants are protected. While the circumstances of each case may vary depending on the terms of the mortgage or charge under which a receiver is appointed, the policies and procedures of banks in appointing receivers cannot affect the statutory or contractual rights of tenants. The tenant continues to enjoy the same security of tenure. The appointment of a receiver does not mean that a tenant loses their rights under the Residential Tenancies Act 2004. The Act also sets out the procedures and notice periods that must be complied with when terminating a tenancy. In documentation submitted prior to recent meetings with the Joint Oireachtas Committee on Finance, Public Expenditure and Reform, AIB, Bank of Ireland and Ulster Bank confirmed that they adhere to the legislative framework when dealing with the repossession of buy-to-let properties.
The Central Bank of Ireland is responsible for the regulation of financial institutions. The Residential Tenancies Act is about regulating the landlord/tenant relationship. It does not and should not extend to what banks can and cannot do.
The PRTB is aware of the impact on tenants of receivership and repossession proceedings. The Board is engaging with the Central Bank and the financial institutions with a view to developing a voluntary code of practice to apply in such situations. The main purpose of the code would be to ensure that the financial institutions are fully aware of the provisions of the Residential Tenancies Act and to ensure that there is consistency and fairness in the treatment of tenants in these cases.
