Vol. 483 No. 5
133 Mr. Higgins (Dublin West) asked the Minister for the Environment and Local Government his views on whether the fourth term of reference of his study into house prices regarding affordability for the house purchasers is too narrow; and the reason this term of reference does not take account of the affordability of living in private renting or other social housing. [20896/97]
134 Mr. Higgins (Dublin West) asked the Minister for the Environment and Local Government whether the study into house prices will pay considerably more attention to examining the lending regime of mortgage finance institutions and, in particular, to their mortgage arrears management practices in relation to fixed penalties and other fines levied, compound interest charged on overdue arrears and legal fees charged to the borrower in view of the repossession of a family house and farm in County Waterford. [20897/97]
I propose to take Questions Nos. 133 and 134 together.
The continued affordability of home ownership is one of the main concerns of the study on house prices. To the extent that house prices influence rents in the private rented sector, the conclusions of the study will have relevance to that sector. Rents of local authority and voluntary housing accommodation are set in relation to the income of the tenants rather than to house prices.
The study will include consideration of the procedures followed by mortgage lending agencies in advancing loans to house purchasers. The arrears management practices of lending agencies are not material factors in relation to house price increases and are, therefore, outside the scope of the study.
