6 February 2003 Edition
Ground rents - Unfinished business
ACRA, the 26-County Body for Residents' Associations has entered the 30th year in its struggle against Ground Rents. These rents are a feudal hangover tax from the days of British colonial rule, which entitle landlords to collect annual fees for the land on which a house is built.
The fees can last as long as a lease, or they can last indefinitely. If a lease expires, the householder can choose to buy a freehold on their house for one eighth of its value, or sign a new lease for a higher rent.
Roughly 250,000 homes are subject to the rents, and there are many state buildings standing on land still owned by British landlords or property developers.
Tony O'Toole, Chairman of ACRA's Ground Rent subcommittee, lives on ground rent land, but hasn't paid the rent since 1974.
"ACRA had been around since 1953 but it was in '74 that it actively took up the Ground Rents issue and thousands of us began our boycott," he says.
Twenty thousand court cases resulted from the campaign, with 147 cases for committal to prison. In all, five householders have been jailed.
"The issue is becoming more urgent by the minute," says Tony. "With the value of houses going up and up, people whose leases are due to expire are tearing their hair out.
"One Dublin householder whose ground lease has expired is struggling to hold onto the family home. The ground rent landlord is demanding a sum of anything up to §54,000 for the freehold interest, plus legal fees of §127 per hour until agreement is reached.
"This is our 30th year and we believe it is an opportune time for the Dáil and Seanad to rid the country of this feudal code."
The Ground Rent Bill to abolish ground rents has been on every list of promised legislation published by the Fianna Fáil/Progressive Democrats Coalition since they came to office in 1997. It has not made one inch of progress since then. In the latest list, published on 27 January, it is again listed among Bills whose main points have yet to be even approved by government and they say it is not possible to state when publication can be expected.
Sinn Féin TD Caoimhghín Ó Caoláin has fought many times for legislation on the rents.
"This Bill has been left on the list simply so that the government can have some scrap to offer when they are questioned on the continuing injustice of Ground Rent," he says.
"They have no intention of doing anything about it. In Dáil session after session I have urged the Taoiseach to advance this legislation and he has repeatedly given the stock answer that there are constitutional difficulties and they were 'looking at it'. I'll continue to make this an issue and to expose their duplicity."
The ACRA Ground Rent Subcommittee is in regular contact with householders throughout the country who are dealing with ground rent landlords, their agents and solicitors.
Legislation was passed in 1978 which meant no new ground rents could be created on private dwelling houses, but ground rents existing before May of that year are still being enforced by court action, threats from sheriffs of seizure of goods from homes and of imprisonment.
"Ground rent landlords have exerted enormous pressure and influence out of all proportion to their numbers," says Tony. "They have the money, the land through conquest and the confiscation that followed, and employ the best brains in the legal profession. Without legislation, what chance has the householder got against such power and influence?"
ACRA does not accept the government's line as a valid reason for the delay.
"To cite 'constitutional difficulties' shows an extraordinary degree of political bankruptcy," says Tony. "If the government feels there are constitutional difficulties, they should deal with this problem in the same manner as they dealt with the social housing bill. That Bill was referred to the Supreme Court to test its constitutionality before it was signed into law."
The fees can last as long as a lease, or they can last indefinitely. If a lease expires, the householder can choose to buy a freehold on their house for one eighth of its value, or sign a new lease for a higher rent.
Roughly 250,000 homes are subject to the rents, and there are many state buildings standing on land still owned by British landlords or property developers.
Tony O'Toole, Chairman of ACRA's Ground Rent subcommittee, lives on ground rent land, but hasn't paid the rent since 1974.
"ACRA had been around since 1953 but it was in '74 that it actively took up the Ground Rents issue and thousands of us began our boycott," he says.
Twenty thousand court cases resulted from the campaign, with 147 cases for committal to prison. In all, five householders have been jailed.
"The issue is becoming more urgent by the minute," says Tony. "With the value of houses going up and up, people whose leases are due to expire are tearing their hair out.
"One Dublin householder whose ground lease has expired is struggling to hold onto the family home. The ground rent landlord is demanding a sum of anything up to §54,000 for the freehold interest, plus legal fees of §127 per hour until agreement is reached.
"This is our 30th year and we believe it is an opportune time for the Dáil and Seanad to rid the country of this feudal code."
The Ground Rent Bill to abolish ground rents has been on every list of promised legislation published by the Fianna Fáil/Progressive Democrats Coalition since they came to office in 1997. It has not made one inch of progress since then. In the latest list, published on 27 January, it is again listed among Bills whose main points have yet to be even approved by government and they say it is not possible to state when publication can be expected.
Sinn Féin TD Caoimhghín Ó Caoláin has fought many times for legislation on the rents.
"This Bill has been left on the list simply so that the government can have some scrap to offer when they are questioned on the continuing injustice of Ground Rent," he says.
"They have no intention of doing anything about it. In Dáil session after session I have urged the Taoiseach to advance this legislation and he has repeatedly given the stock answer that there are constitutional difficulties and they were 'looking at it'. I'll continue to make this an issue and to expose their duplicity."
The ACRA Ground Rent Subcommittee is in regular contact with householders throughout the country who are dealing with ground rent landlords, their agents and solicitors.
Legislation was passed in 1978 which meant no new ground rents could be created on private dwelling houses, but ground rents existing before May of that year are still being enforced by court action, threats from sheriffs of seizure of goods from homes and of imprisonment.
"Ground rent landlords have exerted enormous pressure and influence out of all proportion to their numbers," says Tony. "They have the money, the land through conquest and the confiscation that followed, and employ the best brains in the legal profession. Without legislation, what chance has the householder got against such power and influence?"
ACRA does not accept the government's line as a valid reason for the delay.
"To cite 'constitutional difficulties' shows an extraordinary degree of political bankruptcy," says Tony. "If the government feels there are constitutional difficulties, they should deal with this problem in the same manner as they dealt with the social housing bill. That Bill was referred to the Supreme Court to test its constitutionality before it was signed into law."