asked the Minister for the Environment if he will consider the carrying out of a review of the Housing Finance Agency Scheme now that it is a year in operation in view of the fact that many Deputies have grave reservations about this scheme; and if he will make a statement on the matter.
Written Answers. - Housing Finance Agency Scheme.
209.
Responsibility for the operation and the on-going review of the Housing Finance Agency Scheme rests in the first instance with the board of the agency. Following a review by the board of the agency, a number of changes in the scheme were introduced by the agency, the main one being an increase in the income eligibility limit from £9,000 to £10,000 for applications received on or after 6 April 1983. Since its inception in March 1982, the scheme has proved very popular with house purchasers many of whom have been attracted by the income-related repayments and the opportunity to obtain a loan of up to 90 per cent of the value of a house.
Some 2,249 loans were approved in 1982 and a further 1,246 in the first five months of this year. A total of 773 loans valued £15.6 million were paid in 1982 and a further 1,077 loans valued £20.6 million have been paid by 31 May this year. The agency's allocation for 1983 is £50 million which is expected to fund up to 2,500 house loans.
On the evidence of the agency's bond issues to date, it is apparent that it has succeeded in tapping an important new source of finance for house purchasers.