Dermot Ahern establishes working group on rent reviews

The Minister for Justice, Equality and Law Reform, Mr. Dermot Ahern, T.D., has today announced that he is establishing a Working Group to look at the issue of commercial rent reviews.

The Group will be asked to focus particularly on the arbitration process and the adequacy of the information available to all parties in the context of commercial rent reviews.

Commenting on the need for such a Group, the Minister noted that: "Having already banned upwards only rent reviews in new leases, I am now moving to bring all the relevant parties together with the relevant Government departments to see how we can deal further with other aspects of concern in existing leases.

Concerns have been expressed about the adequacy of  the information which is available to parties in the context of commercial rent reviews. I believe that this is a matter which merits examination. It is in the public interest that there is confidence in the system whereby rent reviews are determined in the commercial sector. 

I also want the Group to explore how the arbitration system can be better used in these cases. Letters of invitation have issued to interested parties and I hope that the first meeting of the Group will take place in the near future."

The Terms of Reference for the Working Group are as follows: 

To consider the operation of the current system for determining the rent payable on foot of a rent review clause, with particular emphasis on the arbitration process and the adequacy of the information available to all parties and, if necessary, to make such recommendations for change as may seem appropriate.

The Group has been asked to report to the Minister by the end of June.

4 March 2010