Written answers

Tuesday, 10 March 2009

Department of Environment, Heritage and Local Government

Private Rented Accommodation

9:00 pm

Photo of Leo VaradkarLeo Varadkar (Dublin West, Fine Gael)
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Question 383: To ask the Minister for the Environment, Heritage and Local Government if he will introduce legislation to outlaw provisions from contracts which prevent downward reviews of rents; and if he will make a statement on the matter. [9647/09]

Photo of Michael FinneranMichael Finneran (Roscommon-South Leitrim, Fianna Fail)
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I understand the question to refer to contracts in respect of residential tenancies, as my Department has no function in relation to the general law governing the operation of contracts. Private residential tenancies, with limited exceptions, are governed by the Residential Tenancies Act 2004 and the main provisions in respect of rent and rent reviews are set out in Part III of that Act. Under section 19 of the Act, it is prohibited to set the rent under a tenancy at a rate above the market rent at either the beginning of the tenancy or at any subsequent rent review. Both tenants and landlords have the right to a review of rent, even where there is no provision to that effect in the tenancy agreement. Such a review may not take place more frequently than once in each period of 12 months nor in the first 12 months of the tenancy. I have no plans to introduce further legislation in this area at this time; however, I will keep the matter under review.

With regard to local authority housing, local authorities set rents for social housing tenants based on their Differential Rents Schemes. While it is a matter for each authority to determine an individual's rent, the principle of the scheme is that a household is charged a rent based on a proportion of their income. It would be very prohibitive if a tenant's rent could not be reviewed downwards, as a tenant's circumstances could change many times throughout the lifetime of their tenancy.

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