I propose to take Questions Nos. 261 and 294 together.
There 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. The second scheme provides for an Approved Housing Body (AHB) to acquire ownership of a property with an unsustainable private mortgage from a lender, which also enables the household to remain in their home as a social housing tenant. Both schemes are part of the overall suite of social housing options and an important part of the mortgage arrears resolution process.
Information in relation to Local Authority Mortgage to Rent (LAMTR) scheme applications during its pilot phase in Dublin City Council and Westmeath County Council in 2013 and from the national roll out of the scheme in 2014 to the end of 2015, including by local authority and by year, is available on my Department’s website at the following link: -
http://www.housing.gov.ie/housing/statistics/house-prices-loans-and-profile-borrowers/local-authority-loan-activity.
To date in 2016, 59 LAMTR cases have been received and approved and a further 19 claims are currently being processed. Local authorities are responsible for submitting valid LAMTR applications to my Department and all applications received were approved.
In relation to activity under the AHB Mortgage to Rent scheme which was introduced in 2012, up to the end of Quarter 3 2016, a total of 3,498 cases had been submitted. Of the 3,498 cases submitted, 2,642 were ineligible or terminated during the process. The reasons for this are varied and can depend on the lender, the property, the household and the ability of the AHB sector to increase their involvement in the scheme. Of the remaining cases submitted, 669 are actively being progressed and 187 have been completed. Further statistical information relating to the scheme since its inception, including a breakdown by local authority and by year, is available on the Housing Agency’s website at the following link: www.housingagency.ie/Our-Services/Housing-Supply-Services/Mortgage-to-Rent.aspx.
A number of amendments were made to the AHB Mortgage to Rent Scheme in July 2015 to enable more properties to qualify and to make the scheme more flexible and accessible to borrowers.
Notwithstanding the amendments already made to the scheme, the Government has included a review of the AHB Mortgage to Rent Scheme as an action in the Rebuilding Ireland Action Plan for Housing and Homelessness. The review, currently underway, is examining what further amendments can be made to the scheme to make it work better for borrowers and my Department is consulting with key stakeholders in this regard. The review is to be completed by the end of the year.