asked the Minister for the Environment the specific steps which will be taken to promote a co-ownership housing policy.
10.
Ceisteanna—Questions. Oral Answers. - Co-ownership Housing Policy.
9.
asked the Minister for the Environment if he will consider introducing a tenant-local authority joint ownership scheme for house owners who become unemployed and are unable to meet loan repayments.
11.
asked the Minister for the Environment if it is proposed that proposals for a co-ownership housing policy will be implemented; and if he will make a statement on the matter.
I propose to take Questions Nos. 9, 10 and 11 together.
As indicated in paragraph 5.83 of the national plan, possible co-ownership or equity sharing arrangements are being examined to see if they offer practical means of supplementing other means of reducing the demand for, and the cost of, local authority housing. However, I would not visualise such arrangements being a practical means of assisting owner-occupiers who are experiencing difficulty in meeting their loan repayments.
Is the Minister aware that his Minister of State, in response to questions from this side of the House, indicated many months ago that the question of introducing a co-ownership policy was under consideration? May I take it that such a policy is still under consideration and that a decision had not been made on that matter when the Government published Building On Reality? Will the Minister agree that these discussions have not reached a conclusion at all?
Co-ownership is one of a number of concepts being examined in the Department and until that examination is completed it is not possible to say what form such a scheme might take.
Will the Minister tell the House how long this matter has been under consideration in the Department?
As the Deputy is aware a wide range of housing considerations have taken place since I took office. A whole plethora of housing initiatives were considered including ones under which local authorities would have the choice as to how they house those on their housing lists. The matter referred to is one of the areas being looked at. I have indicated that while this will not solve the major problem that exists in that area it is one of the matters being considered.
Will the Minister tell the House how long the Department have been considering the question of co-ownership?
It has been considered in the Department for some time, certainly for the last six months, in conjunction with a lot of other initiatives of which the Deputy is aware and which have been brought into operation.
Surely it does not take six months to consider this? I am aware of things being under consideration but not of them being brought into operation.
I was disappointed to hear the Minister say that he would not favour joint ownership. Is the Minister aware that many people who have SDA loans, through no fault of their own but as a result of redundancies and changes in their circumstances, are unable to meet loan repayments? Many local authorities are faced with having to make a decision to either take over the houses and permit those people in as tenants or allow the arrears to mount up. Is it not a better idea when people are unable to meet their repayments that there should be a system to help them bearing in mind that it is not possible to extend the term of the mortgage?
I did not say I was not in favour of the scheme but I did say that I could not visualise such an arrangement being made as a practical means of assisting owner-occupiers who are experiencing difficulties in meeting their loan repayments. I do not think this would be the proper vehicle for assisting that category of people.
Why not?
What method is the Minister suggesting? Local authorities have two options, to permit the owner to continue with arrears — that would result in an impossible position — or take over the house which they are entitled to do under the terms of the mortgage.
I am aware that this is the usual option taken by local authorities but the system being suggested is not put forward to deal with such a problem. That is why I am insisting that it is not the method to get over the problems of those who cannot meet their commitments on loans.
If there is a better system we would like to hear it.
Will the Minister agree that the matter referred to by Deputy Leonard is similar to that of a person who would be anxious to benefit under a co-ownership housing loan policy, such an applicant being unable to undertake repayments on the full loan but being prepared to share the repayments with the local authority? The Minister must be aware that several local authority tenants——
Co-ownership means that there is both a loan and a rent being paid.
That is correct.
This is not a vehicle for solving the problems of people who cannot make loan repayments.
It is a facility to assist people on low incomes.