I propose to take Questions Nos. 501 and 502 together.
In July 2004, I announced significant improvements to the loan and income limits for shared ownership and affordable housing schemes. The eligibility limit for applying for these schemes is now €36,800 for a single income household. In the case of a two-income household, both incomes are assessed in determining eligibility on the basis of a formula whereby two and a half times the main income and once the second income cannot exceed €92,000.
The maximum loan which may be advanced by local authorities for the acquisition of a house under these schemes is €165,000. In the case of shared ownership loans, where appropriate up to above maximum may be advanced by a local authority in respect of the purchased equity in a house. As ownership is shared between the purchaser who buys at least 40% of the value of the house and the local authority from whom the purchaser rents the remaining share, the house price can in such cases be significantly in excess of the loan.
It is a matter for each local authority to administer house purchase loans in its area having regard, as appropriate, to the housing needs and circumstances of its area. In determining the maximum mortgage loan in each case, local authorities should have regard to the purchaser's ability to repay by reference to their net household income. My Department continues to monitor the various housing schemes taking into account the movement in house prices, the effectiveness of various schemes in meeting the needs of the relevant target group and the availability of mortgage finance in the private sector.