Upward only rent reviews have been banned in Ireland by its Government.
The Minister for Justice, Equality and Law Reform, Dermot Ahern, today signed a banning order on upwardly only rent review clauses under section 132 of the Land and Conveyancing Law Reform Act.
The ban will come into operation on February 28 next year but will not work retrospectively.
Ahern said: “The practice of including upward only review clauses in business leases is a deeply entrenched one. The time has come to end this practice. I look forward to more equitable business arrangements being put in place in the future which take account of the reality facing many business owners and retailers.”
It was feared that the Irish Government was dragging its heels on its pledge to abolish the system because it was seen to undermine its new lending initiative.
In October leading retailers on Ireland’s top shopping street petitioned the European Parliament to flag up the “anti-competitive” upward-only rents system. The Grafton Street Tenants Association was backed by retailers including Boots, La Senza and Topman.