A new working group established to examine the issue of commercial rent reviews, is due to report at the end of June. That is according to Minister for Labour Affairs Dara Calleary.
The working group will also look at the arbitration process and the information available regarding commercial rent reviews, as well as making recommendations for change.
The Government has already taken steps to outlaw upward only rent reviews in future leases. The Conveyancing Law Reform Act, 2009, prohibits upward only rent reviews in all future leases. That provision came into force on February 28 last.
The effect of the Government legislation is that future rents on commercial properties can move down as well as in an upwards direction.
“This is another clear sign that the Government is listening to the concerns of the business community and moving to address them as best we can. The Minister for Justice has already banned ‘upward only’ rent reviews in the case of new leases and has asked for a report from this working group by the end of June,” said Minister Calleary.
“Businesses across the constituency have been raising their concerns over rents with me and I very much welcome the decision to establish this working group and bring all relevant parties together into this process,” added Minister Calleary.
“It is of paramount importance that all of the stakeholders in this process, particularly landlords and the business tenants, engage with this group and ensure their voice is heard. While we have dealt with the concerns of the business community regarding rent reviews for future leases it is very important that we take a thorough look at what can be done in the case of existing leases.”
