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. This scheme was extended nationally in June 2012, targeting those 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.
One case has been finalised with several more due to close by year end; however lenders have put forward in excess of 500 cases and currently are actively engaged with over 100 customers on Mortgage to Rent with a further 100 cases at an early stage in the process.
The numbers of completed transactions is low but significant progress has been made. All of the main lenders and so called sub - prime lenders are fully engaged and have instituted the necessary internal processes. It is also important to bear in mind that the transition from being a homeowner to a social housing tenant is a major one for families. Mortgage to rent or other such interventions cannot be rushed for any party. For example, the process provides a 60 day decision period and a 28 day cooling off period within the time frame of the scheme. My Department estimates that the overall time frame per case from start to completed transaction will be up to eight months . This compares favourably to the time frames in other jurisdictions operating similar schemes.
The level of ambition for next year under mortgage to rent and the prospective associated mortgage to lease arrangements will be determined largely in the context of the Estimates process for 2013. It will be essential to deal with any potential displacement effect for other categories of social housing need arising as a result of the wider roll-out of mortgage to rent.
