Dáil Éireann Debate, Wednesday - 3 October 2012
153. Deputy Simon Harris asked the Minister for the Environment; Community and Local Government his plans to introduce a scheme to enable mortgage holders in difficulty to return ownership of their property to a financial institutions or local authorities and to then pay rent and continue to reside in the same property; and if he will make a statement on the matter. [42220/12]
View answer154. Deputy Simon Harris asked the Minister for the Environment; Community and Local Government if any discussions have taken place between his Department or agencies under the auspices of his Department and local authorities (details supplied) regarding the implementation of a mortgage to rent scheme; and if he will make a statement on the matter. [42221/12]
View answerI propose to take Questions Nos. 153 and 154 together.
On foot of the recommendations of the Keane Report on mortgage arrears, the Government launched a mortgage to rent scheme on a pilot basis in February 2012. The scheme was extended nationally in June 2012, targeting low income families whose mortgage situation is unsustainable and where there is little or no prospect of a significant change in circumstances in the foreseeable future. The scheme ensures that the family remains in their home, while ownership is transferred to an approved housing body who in turn rent it to the original owners.
Householders seeking to avail of the mortgage to rent scheme must:
- have had their mortgage deemed unsustainable under a Mortgage Arrears Resolution Process as provided for under the Central Bank’s Code of Conduct on Mortgage Arrears;
- agree to a voluntary repossession of their home;
- be eligible for social housing support; and
- not have significant positive equity in the property.
Limits on household income, property value and applicant assets also apply. Borrowers wishing to avail of this scheme may access further information on the Housing Agency website, www.housing.ie. More than sixty cases are currently being processed under this scheme.
My Department has been in consultation with local authorities on the implementation of the Mortgage To Rent scheme including local authorities’ responsibilities in assessing eligibility for the scheme.
