Dáil Éireann Debate, Thursday - 17 November 2016
166. Deputy Brendan Smith asked the Minister for Housing, Planning, Community and Local Government his proposals to increase the income eligibility limits for local authority housing for councils such as Cavan in view of the increasing difficulties faced by persons slightly above the existing income limits in purchasing a home themselves; and if he will make a statement on the matter. [35635/16]
View answerThe Social Housing Assessment Regulations 2011 prescribe maximum net income limits for each housing authority, in different bands according to the area, with income being defined and assessed according to a standard Household Means Policy.
The income bands and the authority area assigned to each band were based on an assessment of the income needed to provide for a household's basic needs plus a comparative analysis of the local rental cost of housing accommodation across the country. The limits also reflect a blanket increase of €5,000 introduced prior to the new system coming into operation, in order to broaden the base from which social housing tenants are drawn and thereby promote sustainable communities.
I am satisfied that the current income limits generally provide for a fair and equitable system of identifying those households unable to provide accommodation from their own resources. These limits will continue to be kept under review by my Department, as part of the broader social housing reform agenda set out in the Social Housing Strategy 2020 .
I am aware of the difficulties experienced by some households in purchasing their own home where they are not eligible for social housing support on income grounds. It may be possible for such households to avail of a mortgage from a local authority which is targeted at lower income first- time buyers who can demonstrate that they are unable to get a loan from a building society or bank. A loan can be up to 97% of the price of the property, subject to a maximum loan of €200,000. The relevant terms and conditions applying to local authority housing loans are set out in the Housing (Local Authority Loans) Regulations 2012 (S.I. 408 of 2012), which prescribe a maximum annual gross income threshold of €50,000 for a single person household or a combined annual gross income of €75,000 for a two person household. The Regulations are available on my Department’s website at: Housing (Local Authority Loans) Regulations 2012.
Another option is the Home Choice Loan, a Government backed mortgage for first time buyers. The Home Choice Loan is available through authorised mortgage brokers and can be used to provide up to 92% of the market value of the property being purchased, up to a maximum loan amount of €285,000. A new or second hand property may be purchased under the scheme. Further information is available at: www.homechoiceloan.ie.
