Concerned over the increasing number of banks seeking repossession orders on private residential property, the PRTB (Private Residential Tenancies Board) recently confirmed to the Irish Banking Federation the rights of tenants under the Residential Tenancies Act 2004.
Once a tenant has lived in a property in excess of 6 months they enjoy security of tenure under which they are entitled to remain in the property for up to four years (Section 28 RTA 2004). There are limited grounds for termination by landlords which is set out in Section 34 of the Act. These grounds include:
- the tenant not complying with the obligations of the tenancy
- the dwelling is no longer suitable to the occupants accomondation needs (i.e. overcrowding)
- the landlord intends to sell the property in the next 3 months
- the landlord requires the dwelling for own or family member occupation
- the landlord intends to refurbish the dwelling
- the landlords intends to change the business use of the dwelling
Otherwise the tenant must be given a minimum notice as outlined in Section 66 of the Act. This notice increases with the duration of the tenancy from 28 days where the residency is less than six months up to 112 days for a residency of four or more years.
According to the PRTB – a repossession does not override the legal protections afforded tenants under the RTA.
As banks continue to assess value (shuddering at the balance sheet damage) it is most likely these properties will continue to be tenanted until who knows when (2030 was the date recently reported by some optimistic economist for a return to 2006 house price levels…)