Tenant Purchase Scheme Administration

Dáil Éireann Debate, Tuesday - 21 April 2015

Tuesday, 21 April 2015

Questions (628, 631, 634)

Brendan Griffin

Question:

628. Deputy Brendan Griffin asked the Minister for the Environment, Community and Local Government when a new tenant purchase scheme will be introduced; and if he will make a statement on the matter. [15353/15]

Michael McGrath

Question:

631. Deputy Michael McGrath asked the Minister for the Environment, Community and Local Government when a new tenant purchase scheme will become operational; the way the discount on the market value of the property will be calculated; and if he will make a statement on the matter. [15414/15]

Pat Deering

Question:

634. Deputy Pat Deering asked the Minister for the Environment, Community and Local Government if consideration will be given to the introduction of a new tenant purchase scheme for local authority tenants; if further consideration will be given to the extension of such a scheme to include tenants in voluntary housing schemes such as Respond and Cluid; and if he will make a statement on the matter. [15500/15]

Written answers

Minister for the Environment, Community and Local Government

I propose to take Questions Nos. 628, 631 and 634 together.

Part 3 of the Housing (Miscellaneous Provisions) Act 2014 provides for a new scheme for the tenant purchase of existing local authority houses along incremental purchase lines. The Government’s Social Housing Strategy 2020 includes a commitment to make the Regulations necessary for its introduction in the second quarter of 2015.

The scheme will operate along the lines of the incremental purchase model currently operating for local authority apartments and certain new local authority houses, which involve discounts for purchasers linked to household income. The discount will be applied to the purchase price of the house to be determined by the local authority in accordance with the method to be prescribed in Regulations. I intend to relate the purchase price of the house to its market value with replacement costs also being taken into account.

Full details of the scheme , including the income related discounts available to tenant purchasers , will be set out in Regulations that I will make in advance of its introduction.

In the case of approved housing bodies (AHBs), they provide social housing support in conjunction with local authorities through various capital funding schemes underpinned by mortgages and are the de facto owners of these properties. My Department cannot unilaterally make provision for their sale to tenants. Any such decision would have to involve the AHB concerned and have regard to the mortgage on the property.

Section 45 of the Housing (Miscellaneous Provisions) Act 2009 does provide for the sale by housing authorities and AHBs of designated new houses to eligible households, subject to specified terms and conditions. However, any such sales would have to be done in consultation with AHBs. There are currently no proposals or plans for a tenant purchase scheme in relation to existing AHB houses.