asked the Minister for the Environment the proposals, if any, to increase the amount and income limits in relation to the SDA loans presently available.
Ceisteanna—Questions. Oral Answers. - SDA Loans.
13.
While I have no immediate proposals to increase the loan and income limits, I am keeping the matter under continuing review.
Does the Minister honestly believe that the gross ceiling of £3,500 presently applying to applicants for SDA loans is realistic in view of the fact that the price of houses has soared inordinately during the last 14 to 16 months? Will he give urgent consideration to at least increasing the income limit, which is making it increasingly impossible for people to consider even applying for loans?
The experience is not in accordance with what the Deputy says. Applications in the hands of local authorities at 30 September 1978 were valued at £66.6 million as against £43.7 million in the corresponding period in 1977.
(Cavan-Monaghan): Has the £67 million been approved?
The applications would account for that amount as compared with applications for £43 million for the corresponding period in 1977. The expenditure for the scheme in 1978 is expected to have been in the region of £30 million as against £17 million in 1977.
How many loans do these figures cover?
I have not got the number of loans—I have got only the total figure.
It is the number of loans that is important. They may have been very small loans. The income limit is £3,500 and the loan limit is £9,000. How is the person earning £3,500 expected to be able to raise the balance between that and the price of the house. Where are houses available at prices within the incomes of young couples?
The Deputy is engaged in argument.
I am reminding the Deputy that if the loan limit had been left at £4,500 as it was a year and a half ago—despite the increase in house prices in the meantime the limit is now £9,000——
(Cavan-Monaghan): Is the Minister satisfied that a couple with an income of £3,500 can service a loan of £9,000?
Because of the availability of other mortgage finance, the societies appear to be filling the need immediately above that figure.
(Cavan-Monaghan): I do not think the Minister got my question. Is he satisfied that a couple with an income not exceeding £3,500 are capable of servicing a loan of £9,000—that they can afford it?
The usual criterion for deciding what a person can afford in order to be able to service a loan involves two and a half times the income. That is the general criterion and here we are talking about a loan which is just a little more than two and a half times the income.
(Cavan-Monaghan): Does the Minister not know very well that they cannot afford to service such a loan?
That is the criterion.
Where can a young couple find a house at these figures?
I would remind the Deputy that houses throughout the country are not as dear as in Cork or Dublin. The prices vary.
Why mention Cork and Dublin?
I could mention my home town but I do not want to get into a litany——
It is a litany of woe which began in 1977.
More houses were built last year than the previous year.
Give us the figure for the people housed.