Seanad debates

Thursday, 25 November 2021

Residential Tenancies (Amendment) (No. 2) Bill 2021: Report and Final Stages

 

10:30 am

Photo of Malcolm NoonanMalcolm Noonan (Carlow-Kilkenny, Green Party) | Oireachtas source

I meant to respond to the Senator's last point regarding the previous amendment. She made a very good point about making information available, which I acknowledge.

In this case, I cannot accept amendments Nos. 6 or 7, which propose to introduce the concept of a long tenure notice period to provide for an additional 30 days notice for each additional year of duration of a tenancy beyond two years. Chapter 2 of Part 5 of the Residential Tenancies Act, which deals with tenancy terminations and notice periods and other procedural requirements, sets out the procedures for serving a valid notice of termination. Chapter 3 provides for the period of notice to be given when serving a notice of termination. The periods of notice to be given by a landlord, in accordance with table 1 of section 66 of the Principal Act, when serving a notice of termination to a tenant were substantially increased as part of the Residential Tenancies (Amendment) Act 2019 to up to 224 days where a tenant has been in occupation for eight years or more. That was done in consultation with the NGOs from the homeless sector.

Section 16(3) of the 2019 Act provides that:

The Minister shall- (a) not earlier than 2 years and not later than 3 years after the coming into operation of subsection (1), commence a review of the operation of the amendments of section 66 effected by that subsection,

(b) not later than 6 months after the commencement of the review, prepare a report in writing of the findings of the Minister resulting from the review and his or her conclusions drawn from the findings, and

(c) cause a copy of the report referred to in paragraph (b)to be laid before each House of the Oireachtas.

Section 16 of the 2019 Act was commenced on 4 June 2019. Accordingly, the Minister is obliged to conduct a review of the extended notice periods before 4 June 2022. The Senator's proposed amendments will be taken into account in that context. While I appreciate the intent of these amendments, as currently drafted, they may present difficulties and have unintended consequences. These increased notice periods could equally apply to tenants as well as landlords.

The amendment does not state what the standard notice period is, but if we were to assume 120 days, as is currently the notice period where a tenant has been in occupation for a period of two years, this would not be fair to landlords. The requirement for 28 days' notice to be served during the initial six months of a tenancy by both a landlord and a tenant under the Principal Act is in recognition of the fact that the landlord and tenant are generally strangers to each other at the early stage of a tenancy. Both should be afforded the opportunity to exit a tenancy without undue delay, if that is their wish. Unfortunately, scenarios can arise at very early stages that make it clear that a long-term tenancy is not in prospect.

Once the six-month period has elapsed and a Part 4 tenancy commences, the notice period applicable to the tenant was increased under the Residential Tenancies (Amendment) Act 2019 from 28 days to 90 days. After one year, 120 days' notice are to be given. A landlord may have a tenant who pays one month's rent in advance and a deposit equal to one month's rent and thereafter the landlord may not receive any more rent. We must safeguard against rent arrears. A shorter termination notice period for tenancies of less than six months' duration is fair and it applies to both landlords and tenants.

We must also remember that some urgency might apply to a landlord's ground for termination. For example, for financial or personal reasons, he or she might need to sell the property as soon as possible or might need to move into it. We must recognise that 70% of landlords own just one rental property and 86% own either one or two rental properties. Landlords' circumstances are likely to change over time and the Principal Act currently provides lengthy termination notice periods, as I have said, up to 224 days. The 2019 Act substantially extended the notice periods required where a landlord intends to terminate a tenancy. The aim is to provide greater time for tenants to source alternative accommodation in a market that has limited supply. The extended notice periods take into account consultation with the six main housing and homelessness NGOs. There is a commitment that the proposed amendments will be reviewed in that context.

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