Dáil Éireann debate -
Thursday, 29 Jun 2000

Vol. 522 No. 4

Written Answers. - Affordable Housing Scheme.

Bernard J. Durkan

Question:

168 Mr. Durkan asked the Minister for the Environment and Local Government the current maximum SDA loan available to borrowers; the extent to which this loan now facilities the purchase of a dwelling for an average family in the greater Dublin area; and if he will make a statement on the matter. [18951/00]

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

The current maximum SDA loan available to borrowers for the acquisition or construction of a house was increased on 15 June 2000 to £100,000. The maximum mortgage loan in each case is to be determined by the local authority subject to the £100,000 limit and is also subject to the purchaser's ability to repay, that is, mortgage repayments should not exceed 35% of a household's net income, after tax, PRSI and levies.

Where borrowers are unable to acquire a home with an SDA loan, they can consider a shared ownership loan or purchase under the affordable housing scheme. Income eligibility for these schemes is determined as follows: in the case of a single income household, the gross income in the previous tax year must not exceed £25,000 and in the case of a two income household, income eligibility is determined by a formula which takes account of the gross income in the preceding tax year of the principal earner and the subsidiary earner, that is, where two and a half times the income of the principal earner plus once the income of the subsidiary earner does not exceed £62,500.

There is no maximum loan limit set for the affordable housing scheme. However, the maximum loan cannot exceed 95% of the sale price of the house and account has to be taken of the purchaser's ability to repay by reference to net income of the household. In the case of the shared ownership scheme, a borrower must purchase at least 40% of the value of the house and rent and the remaining share, 60% or less, from the local authority.

The average house price paid by a first-time purchaser in the greater Dublin area in 1999 was £124,000.