Dáil debates

Wednesday, 3 July 2019

Local Government (Rates) Bill 2018: Report and Final Stages

 

8:45 pm

Photo of John Paul PhelanJohn Paul Phelan (Carlow-Kilkenny, Fine Gael) | Oireachtas source

The phrasing is used in the amendment in order bring it into line with the other provisions of the 2019 Act.

To answer Deputy O'Sullivan's specific question, the initial rent sought by a landlord is, by its nature, the market rent in the sense that there is no cap on what may be charged. One may set the initial rent for one's property at whatever rate one wishes. The rent pressure zone legislation acts to limit increases thereafter. In that sense, there is nothing unique about the position on pre-63 structures or the protected structures affected by this provision. I understand its phrasing may seem somewhat unclear, but the phraseology is necessary. Our system does not seek to put limits on the rent sought by a landlord letting a property for the first time, although there is a limit on the rate of increase thereafter. Obviously, there is a limit to the market rent a property can achieve, although such limits have been higher in recent years than was previously the case.

The amendment will affect a small number of properties. There is a limited number of protected properties being let. There is an acceptance that necessary works to make them occupiable are limited by the fact that the properties are protected. The amendment is to deal with an omission from the Residential Tenancies (Amendment) Act 2019 and relates specifically to the small number of protected structures.

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