Dáil Éireann Debate, Tuesday - 4 February 2014
418. Deputy Joanna Tuffy asked the Minister for the Environment, Community and Local Government if he will provide figures in tabular form for the number of mortgage to rent arrangements that have been put in place to date; and if he will make a statement on the matter. [5102/14]
View answer482. Deputy Dessie Ellis asked the Minister for the Environment, Community and Local Government the number of units that have so far been turned over to local authorities and approved housing bodies, AHBs, as part of the mortgage to rent scheme; the number of persons seeking to take part in the scheme; and the number of homes that are expected to be turned over to local authorities and AHBs over the course of 2014. [5614/14]
View answerI propose to take Questions Nos. 418 and 482 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. 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 rents it to the original owners. Eligibility requirements are in line with other forms of social housing support.
To date, circa 1,975 cases have been put forward by the lenders for application of the Mortgage to Rent scheme. A total of 779 have thus far been approved for referral to the local authority. 33 cases are completed with households paying a differential rent to an approved housing body, a further 61 are sale agreed and 22 are under offer. An additional 61 are at the valuation stage in the process. A total of 278 cases were terminated during the process for various reasons including: the borrower declining the scheme; the lender withdrawing the offer of the scheme due to a change in circumstances of the borrower; and issues on the local authority assessment, having regard to the accommodation needs of the household concerned. An additional 22 cases failed to agree a sale price or the condition of the property did not allow for the sale to proceed.
It is currently estimated that in the region of 350 transactions will be completed in 2014. A Mortgage to Rent scheme for local authority borrowers in arrears has also been piloted in two local authority areas, namely Westmeath County Council and Dublin City Council. This Scheme will be extended nationally shortly.
Mortgage to Rent Scheme
|
Cases put forward by lenders |
1,975 |
|
Cases approved, to date, for referral to local authority |
779 |
|
Cases at valuation stage |
61 |
|
Completed |
33 |
|
Sale Agreed |
61 |
|
Under offer |
22 |
|
Terminated |
278 |
|
Failure to agree sale |
22 |
