I propose to take Questions Nos. 521 to 523, inclusive, together.
There are currently two mortgage-to-rent schemes in operation through my Department. A scheme exists whereby a local authority (LA) can acquire ownership of properties with unsustainable local authority mortgages thus enabling the household to remain in their home as a social housing tenant (LA- mortgage-to-rent). The other scheme provides for an Approved Housing Body (AHB) to acquire ownership of a property with an unsustainable private mortgage which also enables the household to remain in their home as a social housing tenant (AHB-mortgage-to-rent). Both schemes are designed to assist families with income difficulties whose mortgages are now unsustainable, and where there is little or no prospect of a significant change in circumstances in the foreseeable future.
On foot of the recommendations of the Keane Report on mortgage arrears the Government launched the AHB-mortgage-to-rent scheme on a pilot basis in February 2012 and extended it nationally in June 2012. The scheme is currently in operation and continues to accept applications from lending institutions.
To be eligible for the AHB-mortgage-to-rent scheme a household must have had their mortgage position deemed unsustainable under the Mortgage Arrears Resolution Process, agree to the voluntary surrender of their home, be in negative equity, and be deemed eligible for social housing in accordance with section 20 of the Housing (Miscellaneous Provisions) Act 2009. There is a cap on the value of the property which applies but the location of the property is not a criterion for inclusion or exclusion to the scheme. Notwithstanding this, approved housing bodies must treat each case on its merits and issues such as the operational presence of the AHB or the market rent available may impact on its decision.
A total of 2,496 cases have been submitted to date. 31 of these cases are currently being progressed under revised procedures introduced to improve the process. Of the other 2,465 cases submitted, 1,003 were ineligible or terminated during the process, of which 258 cases were not progressed because the household in question was deemed to be over or under accommodated. Agreement on the sale could not be agreed on a further 50 cases. Of the remaining cases submitted, 48 have been completed, 1,221 are currently with the lenders who are seeking the consent of borrowers to share information and for the carrying out of an independent valuation, and the remaining 143 are actively being progressed.
The following table breaks down the 2,465 submissions made by local authority and by status.
|
Authority
|
Unsuccessful
|
Sale Not Agreed
|
Borrower consent
required
|
Active
|
Completed
|
Grand Total
|
|
Carlow
|
19
|
1
|
21
|
4
|
2
|
47
|
|
Cavan
|
40
|
|
18
|
6
|
|
64
|
|
Clare
|
20
|
2
|
22
|
4
|
1
|
49
|
|
Cork City
|
10
|
2
|
24
|
2
|
3
|
41
|
|
Cork County
|
69
|
1
|
55
|
3
|
2
|
130
|
|
DCC
|
74
|
5
|
121
|
25
|
7
|
232
|
|
DLR
|
9
|
2
|
7
|
0
|
1
|
19
|
|
Donegal
|
27
|
|
16
|
0
|
|
43
|
|
Fingal
|
57
|
3
|
97
|
17
|
2
|
176
|
|
Galway City
|
2
|
|
9
|
0
|
|
11
|
|
Galway County
|
41
|
2
|
17
|
1
|
1
|
62
|
|
Kerry
|
19
|
2
|
18
|
3
|
|
42
|
|
Kildare
|
36
|
2
|
104
|
5
|
5
|
152
|
|
Kilkenny
|
24
|
2
|
26
|
4
|
2
|
58
|
|
Laois
|
28
|
2
|
33
|
3
|
|
66
|
|
Leitrim
|
4
|
|
8
|
0
|
1
|
13
|
|
Limerick
|
51
|
1
|
41
|
5
|
3
|
101
|
|
Longford
|
15
|
|
8
|
3
|
|
26
|
|
Louth
|
13
|
1
|
22
|
1
|
|
37
|
|
Louth
|
29
|
3
|
45
|
15
|
3
|
95
|
|
Mayo
|
18
|
|
21
|
0
|
|
39
|
|
Meath
|
81
|
7
|
116
|
5
|
4
|
213
|
|
Monaghan
|
15
|
|
16
|
0
|
|
31
|
|
Offaly
|
25
|
|
47
|
5
|
|
77
|
|
Roscommon
|
22
|
|
6
|
0
|
|
28
|
|
SDCC
|
58
|
4
|
96
|
9
|
4
|
171
|
|
Sligo
|
14
|
|
4
|
0
|
|
18
|
|
Tipperary
|
60
|
2
|
48
|
4
|
2
|
116
|
|
Waterford
|
25
|
2
|
43
|
8
|
3
|
81
|
|
Westmeath
|
27
|
1
|
27
|
5
|
1
|
61
|
|
Wexford
|
46
|
2
|
44
|
2
|
|
94
|
|
Wicklow
|
25
|
1
|
41
|
4
|
1
|
72
|
|
Overall
|
1,003
|
50
|
1,221
|
143
|
48
|
2,465
|
The following table provides a breakdown by Approved Housing Body.
|
Approved Housing Body
|
Unsuccessful
|
Sale Not Agreed
|
Borrower consent Required
|
Active
|
Completed
|
Grand Total
|
|
Carbery HA
|
7
|
|
13
|
1
|
|
21
|
|
Clúid
|
153
|
38
|
296
|
78
|
38
|
603
|
|
North and East Housing Association
|
2
|
|
|
2
|
|
4
|
|
Novas
|
12
|
|
33
|
1
|
|
46
|
|
Oaklee
|
97
|
6
|
199
|
50
|
7
|
359
|
|
Respond!
|
2
|
1
|
21
|
3
|
|
27
|
|
Tintean
|
1
|
1
|
1
|
|
|
3
|
|
Tuath
|
19
|
2
|
1
|
8
|
3
|
33
|
|
AHB Not Assigned Yet
|
710
|
2
|
657
|
|
|
1,369
|
|
Grand Total
|
1,003
|
50
|
1,221
|
143
|
48
|
2,465
|
The LA mortgage–to–rent scheme was piloted in two local authority areas in 2013, Westmeath County Council and Dublin City Council, and was implemented nationally in February 2014. Dublin City Council and Westmeath County Council completed 10 cases and 8 cases, respectively, under the pilot scheme. Eligibility for the LA -mortgage-to-rent scheme is broadly similar to eligibility under AHB-mortgage-to-rent; however, engagement with the Mortgage Loan and Arrears Support Unit of the local authority is required as an alternative to the Mortgage Arrears Resolution Process for private lending institutions.
