Dáil Éireann Debate, Thursday - 18 November 2010
142 Deputy Richard Bruton asked the Minister for the Environment, Heritage and Local Government if there is a scheme developed by him to accommodate persons who have purchased under his Department’s affordable housing schemes who need to move homes but find themselves in negative equity because such persons could not hope to sell their home and buy another because of the obstacle of negative equity; and if he will make a statement on the matter. [43431/10]
View answerAffordable housing is privately owned housing and, as such, is subject to the fluctuations of the market. Affordable purchasers are in the same position as other private purchasers who are in negative equity and for the great majority of homeowners negative equity will never be anything more than a notional loss in value.
It is not intended to introduce a scheme on the lines proposed in the question; however where the clawback amount payable on the resale of affordable housing would reduce the proceeds of re-sale below the initial price actually paid legislation provides for the amount of clawback payable to be reduced to the extent necessary to avoid that result.
