Real Estate

Commercial Landlord and Tenant

Sub-Letting of Grey Space

As occupiers continue to reassess their space requirements, we expect a continued focus on sub-letting of ‘grey space’ in 2025. Another year has passed without judicial commentary on the provisions of Section 78 of the Landlord and Tenant (Amendment) Act 1980, which may allow sub-tenants to remain in possession after termination of a head lease – even in the case of a default by the head tenant.

View our video: Vacant Office Spaces - The Challenges for Landlords and Tenants - Arthur Cox LLP.

Real Estate-related Legislation

The following real estate-related Bills lapsed on the dissolution of the Dáil and Seanad in November 2024 and will need to be reintroduced by the next government if they are to progress further:

• Residential Tenancies (Amendment) (No. 3) Bill 2024 (the ‘Right to Bid’ Bill)
• Registration of Short-Term Tourism Letting Bill
• Land (Zoning Value Sharing) Bill
• Energy Performance of Buildings Bill
• Heat (Networks and Miscellaneous Provisions) Bill (the last Government approved the General Scheme)
• Remediation of Defects in Apartments and Duplexes Bill
• Building Standards Regulatory Authority Bill
• Fire Services Bill

Read our Briefing: Real Estate Legislation Expected in Autumn 2024 - Arthur Cox LLP.

‘Right to Bid’ Bill

The Residential Tenancies (Amendment) (No. 3) Bill, published in July 2024, proposed to amend the Residential Tenancies Act 2004 to require a landlord terminating a tenancy on the grounds of intention to sell, to serve a notice inviting the tenant to make a bid on the dwelling during a 90-day period.

It was proposed that during the 90-day period, the landlord could only enter into an enforceable agreement to sell the dwelling to the tenant or one of the following that bids in writing to purchase the dwelling on foot of a request to do so by the tenant (with the aim of keeping the tenant in situ): a housing authority; an approved housing body (AHB); or the Housing Agency.

After that period had expired the landlord could seek third-party bids, but the Bill contained additional anti-avoidance provisions to oblige the landlord to offer the property to the tenant again if a third-party bid was less than a bid made on behalf of the tenant.

The Bill contained several exemptions where the first refusal provisions would not apply, including provisions relating to student specific accommodation, AHB and cost rental properties, and multi-let properties where all the units in a property were in sale.

Registration of Short-Term Tourism Letting Bill (STTL Bill)

This Bill proposed the creation of a short-term lettings register and will require those offering accommodation on a short-term basis to tourists (21 days or less) to be registered; to hold a valid registration number issued by Fáilte Ireland (the Irish tourism board); and confirm they have planning permission, where applicable.

The last government was expected to progress the STTL Bill following the decision by the EU to approve (with some modifications) the government’s proposals to regulate short-term lettings (STLs). The general scheme of the STTL Bill was revised on foot of the adoption in April 2024 of the EU Short Term Rental Regulation which focuses on STL data collection and sharing and must be transposed by member states by 20 May 2026.

Given this implementation deadline, it is expected that the STTL Bill (along with updated planning guidance for the STL sector) will be progressed by the next government in 2025.

Land (Zoning Value Sharing) Bill

This Bill, published in September 2024, proposed to permit the State to secure a proportion of the uplift in land values resulting from rezoning decisions.

The proposal was that where rezoned land is developed, and an uplift in land value was realised, a proportion of that value, being 25% of the zoning value of the land, would be payable to the relevant planning authority as a condition of the grant of planning permission before a commencement notice for subsequent development is lodged with the building control authority.

The zoning value payment was proposed to apply to residential, commercial, and industrial zoned lands as well as designated SDZ lands. The payment would have been in addition to existing Part V obligations, the residential zoned land tax and development contributions.