Written answers

Thursday, 21 September 2017

Department of Justice and Equality

Ground Rents Abolition

Photo of Brendan SmithBrendan Smith (Cavan-Monaghan, Fianna Fail)
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117. To ask the Tánaiste and Minister for Justice and Equality further to parliamentary question number 175 of 21 June 2017, if consideration is being given to a constitutional amendment in relation to ground rents; if plans are under consideration to amend the existing statutory framework regarding ground rents; if the operation of existing ground rents legislation is being reviewed; and if he will make a statement on the matter. [40015/17]

Photo of Charles FlanaganCharles Flanagan (Laois, Fine Gael)
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The general position regarding ground rents was considered by the All-Party Oireachtas Committee on the Constitution in its 2004 Report 'Private Property'. The Committee took the view that a ground landlord's ground rent is a form of property right which is constitutionally protected and that abolition of such rents would be unconstitutional in the absence of adequate monetary compensation for the landlord. The Committee also noted that where leases were approaching expiry, any legislation providing for the abolition of ground rents would have to provide for the payment of enhanced compensation. In light of the foregoing, I have no immediate plans to introduce legislation providing for a constitutional amendment.

I should add that section 2 of the Landlord and Tenant (Ground Rents) Act 1978 introduced a prohibition on the creation of new leases reserving ground rents on dwellings. Moreover, as regards existing ground rents, Part III of the Landlord and Tenant (Ground Rents) (No.2) Act 1978 contains a statutory scheme whereby a person may, at reasonable cost, acquire the fee simple in their dwelling. To date, over 80,000 applicants have acquired freehold title to their property under this scheme. In the case of property other than dwellings, such as commercial properties, the Landlord and Tenant (Ground Rents) Act 1967 contains provisions which facilitate acquisition of the fee simple subject to agreed terms or on terms set out in an arbitration carried out by the County Registrar. As indicated previously, operation of existing ground rents legislation is kept under review by my Department.

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