Dáil Éireann Debate, Thursday - 23 April 2015
17. Deputy Brian Stanley asked the Minister for the Environment, Community and Local Government if he will introduce a scheme to assist persons who are in difficulties with local authority shared ownership mortgages; and the number of such mortgages that are currently in distress, and the time frame for same. [15617/15]
View answerThe Shared Ownership Scheme, first introduced in 1991 and amended in January 2003, was designed to facilitate access to home ownership to those who were unable to buy a home outright with a conventional mortgage. The Scheme offered an option to purchase up to half of a property with a standard annuity mortgage, with the balance to be rented from the local authority. The initiative worked well for the majority of borrowers and 16,500 people were facilitated in owning their own home in this way. The Government’s 2011 Housing Policy Statement announced the standing down of all affordable housing schemes, including the Shared Ownership Scheme, given the changes in the property and lending markets.
My Department, with the assistance of the Housing Agency, the Housing Finance Agency and the Local Authority Housing Loans Management Group, is currently reviewing the operation of the Shared Ownership Scheme for existing borrowers. The objective is to seek to address, if and where appropriate, difficulties arising for some shared ownership borrowers. While my Department publishes a wide range of housing statistics, including relating to mortgages, the data do not currently provide a specific breakdown in respect of Shared Ownership mortgages; accordingly, a detailed data collection project is under way to determine the extent of arrears among this set of borrowers.
Pending the outcome of the review, my Department issued a circular letter to local authorities setting out some of the options and interim actions that might be explored to alleviate the difficulties of those in shared ownership arrangements, such as allowing use of the Mortgage Arrears Resolution Process and room rental. It is accepted that such proposals are not a complete solution to the issues that arise for such mortgage holders but they are intended as an interim measure pending the outcome of the review referred to above.
