Dáil Éireann debate -
Tuesday, 1 Feb 2000

Vol. 513 No. 3

Written Answers. - Local Authority Housing.

David Stanton

Question:

215 Mr. Stanton asked the Minister for the Environment and Local Government if his Department has issued or is aware of guidelines used by local authorities when determining the purchase price of local authority housing; the rate by which this housing has increased in price in the past two years; the action, if any, he will take in this matter; and if he will make a statement on the matter. [2265/00]

Minister of State at the Department of the Environment and Local Government (Mr. Molloy)

The Housing (Sale of Houses) Regulations, 1995, governs the sale of rented houses by local authorities to tenants and provide that the purchase price is the market value as determined by the local authority in its existing state of repair and condition. Discounts of 3% on the value of the house are allowed for each year of tenancy, up to a maximum of ten years, plus an additional discount of £3,000. Valuations stand for a maximum period of one year or such lesser period as the local authority may determine. Any improvements carried out by the tenant are disregarded in calculating the sale price. A tenant may contest a local authority valuation by submitting a valuation certificate from a qualified valuer in support of the claim. In the event of significant variation between the two valuations the local authority may refer the matter to the Valuation Office for adjudication.

Regarding the purchase of private houses as part of the local authority housing programme local authorities have been advised that they may purchase private houses where the cost of the acquisition can be met from the authority's capital allocation and the acquisition represents a cost effective and economical means by which the authority can meet the housing needs of persons who have been included in the last assessment of housing need or who have been accepted for inclusion in the next assessment. The approval of the Department is not required for individual purchases or sales to tenants. Detailed information is not therefore available in my Department on the sale and purchase price of local authority dwellings. However such prices would vary greatly having regard to the condition and location of houses at the time of sale or purchase discounts in the case of sales to tenants etc. and the general rate of price increases in the locality.