Social and Affordable Housing

Dáil Éireann Debate, Wednesday - 23 March 2011

Wednesday, 23 March 2011

Questions (64)

Olivia Mitchell

Question:

64 Deputy Olivia Mitchell asked the Minister for the Environment, Heritage and Local Government if, in view of the difficult financial situation for all new homeowners, he will, as a matter of urgency, introduce legislation to exempt owners who bought homes under the affordable housing and shared ownership schemes from the claw-back charge by the county councils in line with the exemption granted to those who bought post 2009; and if he will make a statement on the matter. [5465/11]

Written answers

Minister of State at the Department of the Environment, Heritage and Local Government (Deputy Willie Penrose)

While I am mindful of the difficulties many households are facing in terms of mortgage arrears and issues relating to negative equity it is not intended to introduce a scheme on the lines proposed. It is important to note that the claw-back is intended to prevent short-term profit taking on the resale of the house to the detriment of the objectives of the schemes.

However, where a person is selling and the claw-back amount payable would reduce the proceeds of resale below the initial price actually paid the legislation provides for the amount of the claw-back payable to be reduced to the extent necessary to avoid that result.