Written answers

Tuesday, 12 May 2015

Photo of Róisín ShortallRóisín Shortall (Dublin North West, Independent)
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295. To ask the Minister for Finance in view of the current housing crisis, his plans to introduce emergency powers to prohibit banks from evicting tenants in cases where a landlord is bankrupt and a receiver has been appointed, and which would instead require banks to appoint rent receivers, so that tenants can remain in their accommodation, and not become homeless; and if he will make a statement on the matter. [18618/15]

Photo of Michael NoonanMichael Noonan (Limerick City, Fine Gael)
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The Deputy will be aware that issues relating to the rental market and tenancy rights are for my colleague, the Minister for the Environment, Community & Local Government, Alan Kelly, TD. 

I am informed by the Department of the Environment, Community & Local Government (DECLG), that in circumstances where a receiver is appointed to a landlord's interest in a dwelling it is essential that the rights of tenants are protected.  While the circumstances of each case may vary depending on the terms of the mortgage or charge under which a receiver is appointed, the policies and procedures of banks in appointing receivers cannot affect the statutory or contractual rights of tenants.  The tenant continues to enjoy the same security of tenure.  The appointment of a receiver does not mean that a tenant loses their rights under the Residential Tenancies Act 2004.  The Residential Tenancies Act also sets out the procedures and notice periods that must be complied with when terminating a tenancy.  In documentation submitted prior to recent meetings with the Joint Oireachtas Committee on Finance, Public Expenditure and Reform, AIB, Bank of Ireland and Ulster Bank confirmed that they adhere to the legislative framework when dealing with the repossession of buy-to-let properties.

Furthermore, I understand that the Private Residential Tenancies Board (PRTB) is aware of the impact on tenants of receivership and repossession proceedings.  The Board will engage with the Central Bank and the financial institutions with a view to developing a code of practice to apply in such situations.  The main purpose of the code would be to ensure that the financial institutions are fully aware of the rights, duties and obligations in the Residential Tenancies Act, 2004 and to ensure that there is a consistency and fairness in the treatment of tenants in these cases. 

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