Seanad debates

Tuesday, 29 November 2016

Planning and Development (Housing) and Residential Tenancies Bill 2016: Report and Final Stages

 

11:30 am

Photo of Alice-Mary HigginsAlice-Mary Higgins (Independent) | Oireachtas source

In this amendment we propose a practical measure to address the fact that for many tenants part of the growing insecurity they experience is the fact that the property in which they are living may not be owned by a landlord but, in many cases, has been taken over by a receiver. Those who act as a receiver are freed from the most basic of obligations of a landlord to a tenant, not only the duties set out in the Bill but also basic obligations such as providing for periods of notice.Tenants have nobody to deliver their tenancy rights and may be summarily evicted without being given the most basic and appropriate period of notice. The purpose of this reasonable and appropriate amendment is to require that a "landlord" would mean "the person for the time being entitled to receive (otherwise than as agent for another person, excepting where that person is acting as receiver) the rent paid in respect of a dwelling by the tenant thereof and, where the context so admits, includes a person who has ceased to be so entitled by reason of the termination of the tenancy". The amendment makes clear that receivers are acting as landlords. It also makes a clear exception for cases where a professional management company with its own administration is involved.

To give a sense of the scale of this issue, in the second quarter of 2016, more than 900 buy-to-let properties were taken over by receivers and more than 300 properties were taken over by banks. In one quarter of this year alone, the rights of tenants living in 1,200 properties have magically disappeared. These tenants face the likely outcome of eviction because the task of a receiver is to maximise profit and return. In developing this proposal, we spoke to those who act as professional receivers and they made clear that their normal course of action is not to continue to act as a landlord and take small rent returns but to quickly seek to maximise profit. This involves the eviction of tenants to allow them to turn around the property quickly.

The amendment proposes to require receivers to meet the minimal standards landlords must meet when they decide to sell a property. This means providing the same basic periods of notice and meeting other conditions. We are trying to introduce a countervailing pressure to the pressure on receivers to achieve maximum profit by imposing on them a set of obligations in respect of the rights of the tenant. I am disappointed the Government did not accept this reasonable amendment on Committee Stage. We have re-introduced it on Report Stage to give it another opportunity to accept it.

The Minister of State will tell the House that the Government will soon produce a rental and tenancy strategy. The Bill deals with the current emergency. As I stated, more than 1,000 families per quarter face the prospect of eviction. As such, in the one, two or three quarters the Department will need to produce its rental strategy and translate it into legislation, thousands of families will be placed in jeopardy. The amendment does not propose a radical change in strategy.

The Minister acknowledged that this is a loophole and we are simply calling on the Government to close it. It is not necessary to wait for the strategy to do this. We would like the Minister of State to accept the wording of the amendment.

I recognise that the Fianna Fáil Party has also tabled an amendment on this issue. We would be happy for the Minister of State to accept either amendment. We cannot allow a scenario to continue where up to 1,000 people could be evicted without notice in any given quarter. I ask the Minister of State to accept the amendment.

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