Terence Flanagan (Dublin North East, Fine Gael)
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Question 278: To ask the Minister for the Environment, Heritage and Local Government if he has contacted local authorities who manage the rental accommodation scheme to have them reduce rents paid to landlords in line with falling rents in the property market; and if he will make a statement on the matter. [14049/09]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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The amount of rent paid to private landlords through RAS is agreed following a negotiated process that takes account of current market rents, the value to the landlord of being accepted on to the scheme and the need to deliver value for money for public investment. The actual rent paid is a matter for the individual authority; however guidance from my Department in relation to this matter emphasises the need for authorities to obtain competitive prices for property.

In respect of existing RAS contracts already entered into by local authorities, in many cases these contracts are subject to specific rent review clauses, negotiated at the start of the contract. In undertaking such reviews, local authorities will seek to negotiate a rent that is reflective of the prevailing market conditions in the area.

To further emphasise the need for value for money additional guidance in relation to rental negotiations in respect of the Rental Accommodation Scheme has been developed and is due to issue from my Department shortly.

Leo Varadkar (Dublin West, Fine Gael)
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Question 279: To ask the Minister for the Environment, Heritage and Local Government his plans to out-law upward rent review only clauses in contracts for residential properties; and if he will make a statement on the matter. [14116/09]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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The Residential Tenancies Act 2004 introduced a new regulatory framework governing private rented residential tenancies, providing, inter alia, for – Ø A measure of security for tenants of certain dwellings; Ø Amendment of landlord and tenant law in relation to basic rights and obligations of each of the parties; Ø The cheap and speedy resolution of disputes between such parties; Ø The establishment of the Private Residential Tenancies Board (PRTB) to discharge a range of functions related to these matters.

The Act prohibits the setting of rent above the market rent and it stipulates that, in general, a review of the rent may not occur more frequently than once a year.

On this basis, upwards-only rent reviews are not considered to be a significant issue in the private rented residential sector. Indeed, current data drawn from a number of sources including the Central Statistics Office would bear this out, indicating a decline in rent levels in the sector recently, particularly in the period since early 2008.