Dáil Éireann Debate, Tuesday - 5 July 2016
242. Deputy Eoin Ó Broin asked the Minister for the Environment, Community and Local Government the amount allocated to the mortgage to rent scheme, per year, since the scheme was introduced in 2012; and the amount of this allocation that has been spent per year since 2012, in tabular form. [19253/16]
View answerThere are currently two Mortgage to Rent (MTR) schemes funded by 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 (LAMTR ). 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 MTR ).
My Department makes financial support available to AHBs to fund MTR transactions using capital advanced through the Capital Advance Leasing Facility (CALF). The CALF facility is exclusively available to AHBs to assist them in accessing private finance or Housing Agency Finance to purchase MTR units. Included in a recent package of amendments to the AHB MTR scheme was an increase in the ceiling of support available under CALF for AHB MTR cases from 30% to 40%. Under the LA MTR scheme, my Department recoups the full acquisition cost to local authorities.
Both schemes assist families with income difficulties whose mortgages are unsustainable, and where there is little or no prospect of a significant change in circumstances in the foreseeable future. Both schemes are part of the overall suite of social housing options and an important part of the mortgage arrears resolution process.
The combined allocation for both schemes is set out in the following table, with the appropriate expenditure for each year. While the AHB MTR scheme was launched in June 2012 no expenditure was incurred that year. The LA MTR scheme commenced as a pilot in 2013 in Westmeath County and Dublin City Councils and rolled out nationally in February 2014.
In 2015, savings from other capital subheads were used to provide additional funding to meet the demand for the LA MTR scheme. In 2016, the MTR allocation increased by 70% to €17m. Final 2016 MTR expenditure will be published in due course. As part of the Government’s forthcoming Action Plan for Housing, my Department will examine how Mortgage to Rent can be improved to ensure that more households in distress can avail of the scheme.
|
Year |
MTR allocation |
LA MTR Expenditure |
AHB MTR Expenditure |
Total MTR expenditure |
|
|
€ |
€ |
€ |
€ |
|
2013 |
12 ,000,000 |
1,572,683 |
226,567 |
1,799,250 |
|
2014 |
7 ,000,000 |
6,515,133 |
381,098 |
6,896,231 |
|
2015 |
10 ,000,000 |
14,815,417 |
780,131 |
15,595,548 |
|
2016 |
17 ,000,000 |
166,517 |
147,122 |
313,639 |
