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Rental Sector

Dáil Éireann Debate, Thursday - 9 November 2023

Thursday, 9 November 2023

Questions (89)

Thomas Gould

Question:

89. Deputy Thomas Gould asked the Minister for Housing, Local Government and Heritage the number of mortgage-to-rent applications completed since the review commenced; and to provide an update on the review into the mortgage-to-rent scheme. [43068/23]

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Written answers

The 2021 Review of the Mortgage to Rent Scheme was published on the 24th January 2022. From Quarter 1 of 2022 to the end of Quarter 3 of 2023, a total of 576 Mortgage to Rent applications have been completed. A further 521 applications are currently being actively progressed.

Both the Programme for Government and Housing for All commit to strengthening the Mortgage to Rent scheme and ensuring that it is helping those who need it. Building on the significant amendments made to the scheme in 2017, the 2021 Review examined the impact of these changes and what further changes would benefit those in need of the scheme. While the scheme is performing well, it was assessed that some further enhancements were needed so as to enable more households in need of State support with their long-term housing needs to avail of the scheme.

Four broad categories of actions are identified in the review, including:

a) Broadening the eligibility criteria;

b) Improving the scheme process, structure and financing;

c) Increasing communication and awareness raising; and

d) Responding to developments around mortgage arrears solutions.

A number of actions have been completed and progress is also being made under other actions within the review.

One key priority action was to broaden the eligibility criteria of the scheme and this was implemented in February 2022. These include changes to the positive equity and property acquisition limits and more flexibility on over-accommodation where a member of the household is aged 65 or over, or has a disability. Furthermore, the increase in the income threshold for social housing has also opened the Mortgage to Rent scheme to more borrowers, because households entering Mortgage to Rent must qualify for social housing support. These changes have enabled some additional borrowers that were not previously eligible, to apply for the scheme.

An advertising campaign was conducted towards the end of 2022 under the 'communication and awareness raising' action and further initiatives to increase awareness of the scheme will be undertaken. There is also continued engagement with Abhaile, the Insolvency Service of Ireland (ISI) and Money Advice and Budgeting Service (MABS) to disseminate information on the Mortgage to Rent scheme.

The Housing Agency, on behalf of my Department, recently ran an Expressions of Interest (EOI) process which invited participants from both the private and Approved Housing Body (AHB) sector to put forward their interest in becoming MTR providers that can deliver the scheme at scale. This EOI process is necessary for the long-term sustainability of the scheme and will offer lenders more MTR providers with whom they can engage and process cases with. The results of this process will be announced in the near future, following its conclusion.

The Cross Sectoral Working Group was established and meetings were held in 2022 with the next meeting due to take place once the EOI process referred to is fully concluded.

Full details of the recommendations and associated actions are outlined within the 2021 Review of the Mortgage to Rent scheme for people who have borrowed from commercial, private lending institutions and this review is available on my Department's website.

My Department is also represented on the newly established long-term mortgage arrears group, along with representatives from the Department of Justice, the Department of Social Protection, the Department of Finance and other stakeholders. The objective of this group is to examine the full suite of measures in place to reduce the number of people in long-term mortgage arrears and to recommend changes to increase the efficacy of these measures where necessary.

Questions Nos. 90 and 91 answered orally.
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