Vol. 512 No. 6
311 Mr. Lawlor asked the Minister for the Environment and Local Government if he will amend the regulations governing tenant purchase, shared ownership and other purchase schemes to allow for house price determination to be based upon construction costs plus inflation instead of at current market value in view of the increase in house prices which have placed the purchase of local authority family homes out of the reach of long-term tenants. [26958/99]
The sale price of houses under the tenant purchase scheme is based on the current market value, as determined by the local authority, together with generous discounts. The market value is discounted by 3% of the value of the house for each year of tenancy, up to a maximum discount of 30% plus a further discount of £3,000 in each case. I consider these terms to be fair both to the tenant purchaser and to the taxpayer who funds the provision of local authority housing and I have no plans to amend them.
Purchase on a shared ownership basis is also an option in respect of such houses. In the case of the overall operation of the shared ownership scheme, the local authority acquires on the open market the dwelling selected by the shared owner and there is no scope to alter the basis for price determination. The affordable housing scheme involves the provision by local authorities of additional new houses at cost price specifically for low income house purchasers on land provided by the local authorities.
