Dáil Éireann Debate, Tuesday - 18 December 2012
437. Deputy Michael Healy-Rae asked the Minister for the Environment, Community and Local Government further to old tenant purchase annuities schemes which were disbanded, many tenants are now unable to purchase their properties as they cannot acquire loans; his plans to reintroduce the scheme as it would allow tenants to purchase their homes and pay off a loan rather that renting forever; and if he will make a statement on the matter. [56499/12]
View answer438. Deputy Michael Healy-Rae asked the Minister for the Environment, Community and Local Government further to the present system whereby when a local authority puts a price on a property for a tenant of theirs the price only lasts for a period of 12 months; his views on whether it would be more sensible to extend this to a period of 24 months; and if he will make a statement on the matter. [56500/12]
View answerI propose to take Questions Nos. 437 and 438 together.
It is my intention to replace the tenant purchase scheme with a new scheme based on the incremental purchase model for tenants of existing local authority housing. Legislation is required to underpin the new model which I will introduce as soon as possible. I have no plans to change the requirement that tenant purchasers fund the cost of acquiring dwellings, net of State discount s, from their own resources, including from mortgage s provided by financial institution s or housing authorities . In this connection, it is of critical importance that authorities apply sound lending criteria in deciding whether to advance house purchase loans in individual cases. My Department and individual local authorities have a responsibility to ensure that mortgage lending is prudentially based and that the capacity of a borrower fully to service a loan over the full term is realistically assessed and stress-tested.
Under the terms of the 1995 Tenant Purchase Scheme, the value of the property is based on current market value. I consider it appropriate that valuations last for a period of 12 months only , due to potential market value fluctuations over a longer period. There is a clear obligation on housing authorities to ensure that proper valuations, reflecting the real market value of properties, are obtained for each property.
