Madam, – I refer to letters (January 12th and January 14th) regarding commercial property leases in Ireland.
The Society of Chartered Surveyors has been calling for the establishment of a public database to maintain and publish relevant details of all property transactions including sales, lettings and rent reviews along with details of all incentives and side agreements which would address the issues raised.
Such a database is vital for a fully transparent commercial rent review process. The need is now more pressing and a report published in July 2010 of a working group established by the Minister for Justice concluded such a database would provide transparency, help raise confidence in the rent review process and assist in fixing rents which would be demonstrably consistent with true market values for comparable properties.
The database is also capable of delivering fundamental improvements to the commercial banking sector.
The valuations, which are an essential part of loan and banking decisions for transactions, would be more reliable because they would be founded on accurate up-to-date information. If all those involved in property transactions have access to such information, then better quality projections can be made, leading to improved decisions. This could be a major plank in developing key elements of a programme of economic recovery and the restoration of credibility for Ireland.
In August 2010, the Minister for Justice announced his intention to establish such a database. The society endorses and supports this initiative and it is important that work is undertaken without delay to establish such a database in order to ensure that there is a significant improvement in the flow of information in the commercial property market.
Enabling legislation is the first step. The responsibility for setting up and maintaining the database must be placed in the hands of an agency which has a demonstrable capacity to deliver results, and which will ensure a speedy integrated set-up and a system which will provide reliable, accurate up-to-date information.
This is a matter of considerable urgency and the society recommends action by Government at the earliest opportunity. If it is not enacted before an election, it should be a key policy agenda for the incoming administration. – Yours, etc,