Dáil Éireann Debate, Thursday - 6 October 2016
136. Deputy Catherine Murphy asked the Minister for Housing, Planning, Community and Local Government if the guidelines in the mortgage-to-rent scheme published in August 2015 are still being applied; if there are plans to change the guidelines for the scheme; and if he will make a statement on the matter. [29088/16]
View answer137. Deputy Catherine Murphy asked the Minister for Housing, Planning, Community and Local Government if the guidelines in the mortgage-to-rent scheme published in August 2015 are being fairly applied in the case of a person (details supplied); and if he will make a statement on the matter. [29089/16]
View answerI propose to take Questions Nos. 136 and 137 together.
Amendments were made to the Mortgage to Rent (MTR) Scheme in operation for borrowers from private lending institutions in August 2015 and then reflected in the operation of the Local Authority Mortgage to Rent (LAMTR) scheme with effect from March 2016. These amendments were made, in both cases, to enable more properties to qualify for the schemes and make them more flexible and accessible for borrowers. The changes included an increase in the valuation thresholds for relevant properties and flexibility in the size of the property which qualify for the scheme.
The amendments made also included a new provision for borrowers in negative equity. The effect is that, as a general rule, the criterion of the borrower being in negative equity remains. However, some flexibility is provided, on a case by case basis, to allow for a borrower who is in marginal positive equity to avail of the scheme. Under the new arrangements, under both MTR schemes, cases where the equity is no more than 10% of the Open Market Value to a maximum of €20,000 in Dublin, Kildare, Meath, Wicklow, Louth, Cork and Galway and €15,000 in the rest of the country can be considered under the schemes.
In relation to the specific case raised, I wish to advise that section 63(3) of the Local Government Act 2001 provides that, subject to law, a local authority is independent in the performance of its functions. Section 6 of the Housing (Miscellaneous Provisions) Act 2009 specifically provides that my power as Minister to issue policy directions and guidelines to housing authorities in relation to their housing functions shall not be construed as enabling me to exercise any power or control in relation to any individual case with which a housing authority is or may be concerned.
The Government is committed to supporting households in long-term mortgage arrears to remain in their homes and has included a review of the MTR Scheme for borrowers of private commercial lending institutions as an action in the Rebuilding Ireland: Action Plan for Housing and Homelessness. The review will examine what amendments can be made to the scheme to make it work better for borrowers. My Department has commenced work on scoping the review and in this regard has begun early consultations with key stakeholders. The review is to be complete by the end of the year. Any amendments to the MTR Scheme for borrowers of private commercial lending institutions that may result from the review will also be reflected in the LAMTR Scheme, where appropriate and relevant.
