Shared Ownership Scheme

Dáil Éireann Debate, Tuesday - 21 January 2014

Tuesday, 21 January 2014

Questions (435, 476)

Finian McGrath

Question:

435. Deputy Finian McGrath asked the Minister for the Environment, Community and Local Government his views on a matter regarding shared ownership (details supplied). [2467/14]

Bernard Durkan

Question:

476. Deputy Bernard J. Durkan asked the Minister for the Environment, Community and Local Government the action taken to date to address the outstanding issues in respect of existing shared ownership loans and mortgages with particular reference to the extent to which the rental part of mortgage repayments has dramatically escalated with resultant hardship; and if he will make a statement on the matter. [2827/14]

Written answers

Minister of State at the Department of the Environment, Community and Local Government

I propose to take Questions Nos. 435 and 476 together.

As Minister, it is not appropriate for me to comment on individual cases but I can confirm that the Government’s 2011 Housing Policy Statement announced the standing down of all affordable housing schemes, including the shared ownership scheme, in the context of a full review of Part V of the Planning and Development Acts 2000-2013. Details regarding the review are available on my Department’s website www.environ.ie.

The period for public submissions has closed and submissions from a variety of interested parties are now under consideration. I expect to be in a position to formulate future policy approaches and actions, taking account of the consultation process, in the near future.

In 2013, I asked the Housing Agency to conduct a standalone review of the shared ownership scheme, including identification of the main difficulties and recommendations for mitigating measures. While I have received an initial draft of the review from the Agency a number of issues have been identified that need further detailed financial analysis in order to fully assess the impact on local authority finances of possible mitigating measures. This additional work is underway and I expect to make further recommendations to bring the review process to a conclusion in the near future.

Pending full conclusion of this review, my Department recently issued a circular letter to local authorities setting out some of the options that might be explored to alleviate the difficulties of those in shared ownership distress. These include clarification on renting of rooms and the announcement of the nationwide extension of the Local Authority Mortgage-to-Rent (LAMTR) scheme following the successful completion of a pilot scheme in two local authority areas. To support the national rollout of LAMTR, with the support of the Minister for Public Expenditure and Reform and the Housing Finance Agency, I will be allocating an additional €20m to the Mortgage Arrears Resolution Process (MARP) fund in 2014 to significantly expand the capacity of that resource to assist shared ownership households in mortgage distress.