On 25 June 2009, the Minister for Justice Dermot Ahern tabled an amendment to the Land and Conveyancing Law Reform Bill 2006 (the Bill) which, if passed, will have the effect of outlawing upwards only rent review clauses in new commercial leases. The effect of the change will be that a lease of lands used for business purposes, containing a rent review clause, shall be construed as providing the rent on review may be fixed at an amount which is less than, greater than, or the same as the rent payable immediately before the review date.

 

The provision, if passed, will require a Ministerial commencement order to be made before it comes into force.

 

There is a common law presumption against retrospective effect for all legislation and therefore it is proposed that this change will only apply to new business leases that are entered into after the commencement of the section in the Bill introducing this change.

 

It is likely that the Bill will be passed by the Oireachtas before the summer recess, expected to occur on either the 9 or 10 July 2009. The Bill is scheduled to conclude its report and final stages in the Dail on 1 July next and then will most likely be returned to the Seanad the following week before being signed.