On 28 February 2010 provisions of the Land and Conveyancing Law Reform Act 2009 banning upward only rent review clauses in new business leases came into force.  Subsequently, increased focus has been placed on existing leases which do not benefit from this legislation. Government stance is that applying the ban to existing leases would be unconstitutional.

Opposing political parties have criticised the Government’s approach. The Labour Party are said to be in possession of legal advice contrary to that held by the Government regarding constitutionality issues. The Labour Party tabled a Private Members’ Bill to amend the Land and Conveyancing Law Reform Act 2009 to include an exception to the rule that the ban on upward only rent review does not apply to leases existing prior to 28 February 2010. This was rejected by a Dáil vote.

Dermot Ahern, the Minister for Justice Equality and Law Reform has established a Working Group to look at the issue of rent reviews in existing leases. It is 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, make such recommendations for change as may seem appropriate.

The Working Group is due to report to the Minister by the end of June.