Written answers

Thursday, 19 January 2017

Department of Housing, Planning, Community and Local Government

Housing Issues

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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143. To ask the Minister for Housing, Planning, Community and Local Government the assurances he can provide to tenants in a property (details supplied) in County Limerick that their termination notices have been withdrawn; the security this gives them for the immediate and medium term future; and if he will make a statement on the matter. [2530/17]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The Planning and Development (Housing) and Residential Tenancies Act 2016 was signed by the President on 23 December 2016. The Planning and Development (Housing) and Residential Tenancies Act 2016 (Commencement of Certain Provisions) Order 2017 commences Part 3 of the Act, insofar as it is not already in operation, other than sections 44, 45, 48 and 49. This Commencement Order takes effect from 17 January 2017. Under Part 3 of the Act, Sections 38 to 40 provide, inter alia, that where a landlord proposes to sell 10 or more units within a single development at the same time (i.e. classified as being within a 6-month period), the sale will be subject to the existing tenants remaining in situ, other than in exceptional circumstances. Where, before the commencement of section 40 of the Act, a valid notice of termination has been served on a tenant on the ground that the landlord wishes to sell his/her property, then that notice takes effect as if section 40 had not commenced.

However, I understand that, in the particular case referred to by the Deputy, the termination notices issued before the commencement of Section 40 have since been withdrawn, in which case the protections under Section 40 of the Act apply to the tenancies in question. If the owner proceeds to sell ten or more of the dwellings at one time this can only be done with the tenants in situ, unless the tenant agrees to voluntarily end the tenancy or the owner can demonstrate that the price obtainable for the property is more than 20% below the market value that could be obtained with vacant possession and that this would be unduly onerous or cause undue hardship to them.

The Residential Tenancies Act 2004 regulates the landlord-tenant relationship in the private rented residential sector and sets out the rights and obligations of landlords and tenants relating to, inter alia, security of tenure and the termination of tenancies. The Residential Tenancies Board (RTB) was established as an independent statutory body under the Act to operate a national tenancy registration system and to resolve disputes between landlords and tenants.

Where a tenancy has lasted more than 6 months and less than 6 years, sections 34 and 35 of the Act now provides that, if the landlord is claiming an exemption from the new protections, they must demonstrate in the termination notice that the conditions for an exemption apply in the case – i.e. that the price obtainable for the property is more than 20% below the market value that could be obtained with vacant possession and that this would be unduly onerous or cause undue hardship to them.

Section 56 of the Residential Tenancies Act provides that where there is an abuse of the termination procedure, a tenant may bring a complaint to the RTB that they have been unjustly deprived of possession of a dwelling by their landlord. On the hearing of the complaint the RTB, it if considers it proper to do so, may make a direction that damages are paid to the tenant, that the tenant be permitted to resume possession of the dwelling, or both.

Notice periods for the termination of a tenancy by the landlord vary depending on the duration of the tenancy but periods of up to 224 days are provided for under the Act. Where there is a dispute regarding the appropriate period of notice to be given in respect of a tenancy or the validity of a notice of termination, the dispute may be referred to the RTB for resolution.

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