Update: Upward Only Rent Reviews – Jobs, Enterprise and Innovation 20th November, 2014

To ask the Minister for Jobs, Enterprise and Innovation the extent of any evidence of continued upward only rent reviews; and if he will make a statement on the matter.

*    For WRITTEN answer on Thursday, 20th November, 2014.
Ref No:     44746/14
 

Over the course of the recession, there was a significant reduction in rents. For example, the National Competitiveness Council note that office rents in Dublin on new leases fell by 28 per cent between 2008 and 2013 considerably improving the cost competitiveness of high spec commercial rental vis-à-vis other international cities. Prime high street rents have also come under downward pressure over recent years.

The resumption of economic growth and related upswing in activity has, however, seen commercial rental prices begin to increase once again. This is particularly the case in relation to the market for commercial office space, which may reflect a lag in the development of well located, high quality premises.

As with all cost factors, it is important that we remain vigilant and carefully monitor Ireland’s international cost competitiveness.

In relation to the matter of upward only rent reviews, despite extensive consideration, it has not proved possible to develop a targeted scheme to tackle upward only rent reviews in existing business leases that would not be vulnerable to a legal challenge or require compensation to be paid to property owners. This is based on advice from the Attorney General. The situation has not changed since the receipt of the advice of the Attorney General and, as has been indicated in replies to previous Parliamentary Questions on the subject of upward only rent review clauses, there are no plans to re-examine the decision which was taken in 2011.