Dáil Éireann debate -
Tuesday, 20 Jun 1995

Vol. 454 No. 6

Written Answers. - Tenant Purchase Scheme.

Dermot Ahern

Question:

124 Mr. D. Ahern asked the Minister for the Environment if he will accept that the amended tenant purchase scheme is still beyond the means of many people who, in view of their financial circumstances, are not in a position to raise with their financial institution the amount required to purchase the dwelling; the plans, if any, he has to reamend this scheme in order to facilitate more easily the local authorities in providing finance for people in this situation; and if he will make a statement on the matter. [11174/95]

Minister of State at the Department of the Environment (Ms McManus)

There are no proposals to amend the terms of the new tenant purchase scheme as recently announced in Social Housing — The Way Ahead. This scheme offers more affordable purchase terms to tenants by increasing the discounts and including a shared ownership option. It does not require any tenant purchase to get mortgage finance from a private sector financial institution. The discounts available under the new scheme have been increased by £3,000 for most tenants which is equivalent to a reduction of some £7 a week in mortgage repayments on an ordinary purchase at the current interest rates. Under shared ownership, the outgoings would be reduced by a further £10 per week in the case of a tenant of 10 years' standing purchasing a £25,000 house. Any tenant purchaser may, under either option, obtain mortgage finance from the local authority; in the case of an ordinary purchase he-she also has the choice of getting such finance from a commercial financial institution.