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Tenant Purchase Scheme

Dáil Éireann Debate, Tuesday - 4 October 2016

Tuesday, 4 October 2016

Questions (234)

Mattie McGrath

Question:

234. Deputy Mattie McGrath asked the Minister for Housing, Planning, Community and Local Government if he is satisfied with the fairness of the criteria attached to the tenant purchase scheme for county councils; if his attention has been drawn to the fact that some of the criteria adversely affect old age pensioners, in particular; and if he will make a statement on the matter. [28414/16]

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Written answers

The new Tenant Incremental Purchase Scheme came into operation on 1 January 2016. The Scheme is open to eligible tenants, including joint tenants, of local authority houses that are available for sale under the Scheme. To be eligible, tenants must meet certain criteria, including having a minimum reckonable income of €15,000 per annum.

The minimum reckonable income for eligibility under the Scheme is determined by the relevant housing authority in accordance with the detailed provisions of the Ministerial Direction issued under Sections 24(3) and (4) of the 2014 Act. In the determination of the minimum reckonable income, housing authorities can include income from a number of different sources and classes, such as from employment, private pensions, maintenance payments and certain social welfare payments, including pensions, where the social welfare payment is secondary to employment income.

In order to ensure the sustainability of the scheme, it is essential that an applicant’s income is of a long-term and sustainable nature. This is necessary to ensure that the tenant purchasing the house is in a financial position, as the owner, to maintain and insure the property for the duration of the charged period. This ensures compliance with the conditions of the order transferring the ownership of, and responsibility for, the house from the local authority to the tenant.

In line with the commitment in the Programme for a Partnership Government and reaffirmed in Rebuilding Ireland - Action Plan for Housing and Homelessness, I intend to undertake a review of the scheme in January 2017 following the first 12 months of operation. Following that review I will bring forward any changes to the terms and conditions of the scheme which are considered necessary based on the evidence gathered at that stage.

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