Confusion reigns over Irish lease reform
Published: 23 November, 2011
Abolition of upwards-only rent reviews place in doubt by confusing government statements
The long-awaited abolition of upwards-only rent reviews on existing leases in Ireland may not now happen, after two years of uncertainty which has paralysed both the occupational and leasing markets.
A delegation from the Irish retail trade body Retail Excellence Ireland has been told by the private secretary to the Taoiseach that the government will not be proceeding with legislation to ban upward-only rent reviews in existing commercial leases. The reason given was that the promised legislation “had encountered substantial constitutional difficulties.”
However, as recently as last weekend the Irish papers were quoting government sources as saying that legislation would be brought forward very soon, and no clarification has yet been forthcoming.
If the proposed changes – which formed part of Fine Gael's election platform last year – do not proceed it will lead to a two-tier leasing market, because upwards-only clauses are already banned in new leases in Ireland.
