Dáil Éireann Debate, Tuesday - 17 January 2017
48. Deputy Paul Murphy asked the Minister for Finance his views on reports in the media (details supplied) regarding the mass sale of properties in County Limerick to a vulture fund by NAMA; his views on reports in that article that he met vulture funds to encourage them to come to Ireland; and if he will make a statement on the matter. [1749/17]
Amharc ar fhreagraIn 2016, NAMA sold loans, the debtor for which I understand, owns the units in question in the Strand apartment buildings. As is NAMA's policy, in order to minimise disruption to tenants, the owner did not seek vacant possession of these apartments in advance of NAMA's sale of his loans. Furthermore, the sale of his loans by NAMA did not alter the lease terms or the statutory protections of the tenants. I want to make it clear that, as it does not own the property, NAMA has no role in the landlord - tenant relationship. Equally NAMA cannot impose conditions on a buyer of its loans nor on the owner of the underlying property following a loan sale.
Rather than demonising certain lenders or landlords, we must ensure that an appropriate level of protections, obligations and responsibilities apply consistently for all tenants and all landlords.
Landlord-tenant rights are governed by multiple pieces of legislation, mainly under the aegis of the Minister for Housing, Planning, Community and Local Government. This legislation attempts to balance and protect the rights of the tenant and the landlord and sets out the specific limited circumstances under which landlords are able to seek vacant possession of properties. These restrictions apply to all landlords regardless of who owns their loans.
Under Pillar 4 of Rebuilding Ireland, an amendment to the Residential Tenancies Act was brought through the Oireachtas in December 2016 as part of the Government's rental strategy. The effect of the provision is to require that tenancies are protected where a landlord or investor wishes to sell more than 10 properties in a single development.
I note that, on Friday 13th January, the Minister for Housing, Planning, Community and Local Government confirmed that the owners of the apartments referenced in the question are writing to the affected tenants to withdraw the previously issued termination notices and confirm that they will abide by the spirit of the amendment to Section 35A of the Residential Tenancies Act which is expected to come into effect this week.
The decision by the owners comes after contact from Minister Coveney in which he asked that the spirit of the amendment to Section 35A would be respected, in advance of coming into effect, to ensure that the existing tenancies are unaffected by a transfer of ownership. The owners replied formally to the Minister to confirm that it would respect the change and that it would write to tenants to confirm withdrawal of the original notices.
I am sure the Deputy, and residents of the complex, will welcome this announcement given there was no legal requirement for the property owners to take this approach. I commend the owners for respecting the will of the Government and the Oireachtas. This shows the value already of some of the measures contained in the Government's strategy for the rental sector and the importance of a partnership approach by all players: tenants, landlords, housing providers, local and national Government.
These measures are accompanied by a number of other actions to enhance the Residential Tenancies Board's enforcement and dispute resolution powers. These include faster processing of determination orders, the reduction in period for appeal to Tribunals, and the use of one person Tribunals. Tenants and landlords alike will therefore see a number of improvements as a result of these legislative changes.
Any tenant who believes that their legal rights are being compromised should bring their concerns to the Residential Tenancies Board which has the power to ensure their rights are upheld. This includes cases where a tenant believes that a termination notice has not been properly served.
