Dáil Éireann Debate, Thursday - 12 March 2015
269. Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government the position regarding an individual mortgage-to-rent case in respect of persons (details supplied) in County Cork; the next steps in the process; the estimated timeframe for its completion; and if he will make a statement on the matter. [10980/15]
View answer274. Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government the number of mortgage-to-rent transactions that have been fully completed to date; the number currently at an advanced stage; and if he will make a statement on the matter. [11021/15]
View answer275. Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government his views on raising the maximum house values attaching to the mortgage-to-rent schemes; and if he will make a statement on the matter. [11022/15]
View answerI propose to take Questions Nos. 269, 274 and 275 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.
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.
In order for a property to be considered under the AHB-mortgage to rent scheme it must be purchased by an Approved Housing Body for less than €220,000 (per property) in the Greater Dublin Area and €180,000 (per property) in the rest of the country. These limits were determined by a working group which took account of available market data and the current social housing acquisition limits. These limits are considered to be reasonable in respect of the income bracket that is targeted by the scheme.
A total of 2,748 cases had been submitted by the end of March 2015 under the AHB-mortgage-to-rent scheme. Of these 1, 866 were deemed ineligible or terminated during the process, of which 277 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 42 cases.
Of the remaining 840 cases submitted, 85 have been completed, 176 are currently with the lenders and the remaining 579 are being actively progressed. My Department has issued funding approval in respect of 117 cases.
The Local Authority Mortgage to Rent scheme, which was rolled out nationally in February 2014, allows local authorities to offer the mortgage to rent scheme to local authority mortgage holders with unsustainable mortgages. To date, 81 households in distress with local authority mortgage arrears have been assisted through the scheme. My Department has invited the submission of the first tranche of 2015 LAMTR claims from local authorities by 30 April 2015.
As regards the individual case referred to, I refer to the reply to Question No 555 of 27 January 2015 in which I outlined that an application for provisional approval was received by my Department on 9 June 2014 and that this provisional approval was granted the following day. I understand from the Housing Agency that lender’s consent has since been received and the case has now been issued to the panel of Approved Housing Bodies to seek a purchaser.
