Dáil debates

Wednesday, 10 March 2010

Land and Conveyancing Law Reform (Review of Rent in Certain Cases) (Amendment) Bill 2010: Second Stage (Resumed)

 

3:00 pm

Photo of Chris AndrewsChris Andrews (Dublin South East, Fianna Fail)

It would appear the biggest problem they face is the refusal of institutional landlords to discuss anything in terms of a reduction in rents or a realistic rental rate. In some cases people are locked into 25-year leases, with nowhere to turn if the landlord does not show any willingness to negotiate. The drastic change in the economy over the past 18 months has meant the existing leases into which people are locked with upward-only rent clauses are no longer realistic. In addition to the problem of the unwillingness of institutional landlords to talk, there is also the issue of the arbitration process which is currently used in rent reviews. It is flawed. When one sees a small newsagent at the top of Grafton Street having its rent increased by 18%, there is clearly a problem with the arbitration process which has to be dealt with as a matter of urgency.

I very much welcome the recent decision of the Minister, Deputy Ahern, to set up a working group. Deputy English said it is a review. It is not review; it is a working group seeking to ensure we have a sophisticated response to a very complicated issue.

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