Dáil Éireann Debate, Thursday - 21 March 2013
49. Deputy Dara Calleary asked the Minister for Finance the way he plans to deal with the mortgage arrears crisis in the buy-to-let sector in a manner that does not disrupt the overall well-being of the economy; and if he will make a statement on the matter. [14029/13]
View answerThe Central Bank of Ireland when it published its mortgage arrears data for end of September 2012 also, for the first time, included data on buy-to-let properties. The focus by Government is primarily on formulating and implementing appropriate measures to assist those homeowners who are experiencing genuine difficulty with the mortgage repayments on their principal home. In that regard, the ‘Keane Report’ made a number of key recommendations and the Government is now actively progressing the implementation of those main recommendations. However, some of these initiatives will also be of assistance in addressing significant ‘buy to let’ mortgage arrears and over indebtedness. The Deputy will be aware that last week the Central Bank announced new measures to address mortgage arrears, including the publication of performance targets for the main mortgage banks in respect of principal dwelling homes and the buy-to-let sector. This new approach is aimed at ensuring that banks offer and conclude sustainable solutions for their customers in arrears by setting performance targets and proposing revisions to provision standards. Banks will be required to make regular returns to the Central Bank on their performance against the published targets. The Central Bank will consider each bank’s performance against the targets, including assessing whether sustainable solutions have been offered to customers. Assessments will be carried out towards the end of 2013 and 2014 and the outcome of these assessments will determine whether targets have been met. If banks are deemed not to have met the targets they may be subject to regulatory and supervisory actions by the Central Bank.
