Dáil Éireann Debate, Friday - 7 September 2018
1327. Deputy Catherine Murphy asked the Minister for Housing, Planning and Local Government if a cost analysis has been undertaken to evaluate the potential cost per year to the State to house persons who have had their home repossessed by a bank; and if he will make a statement on the matter. [36332/18]
View answerMy focus, and that of the Government, is to ensure that as many households as possible remain in their homes and in this regard a range of measures are currently being implemented across Government Departments and agencies. These actions are focused on encouraging those in mortgage distress to reach a long term debt resolution, avoid repossession and remain in their home if possible.
One of the measures that has been introduced is a national mortgage arrears resolution service, known as Abhaile, which is provided free of charge to the borrower and its aim is to help mortgage holders in arrears to find the best solutions and keep them, wherever possible, in their own homes. The unique element of Abhaile is that it brings together, for the first time, the full range of supports and services required by borrowers in home mortgage arrears. The Money Advice and Budgetary Service (MABS) acts as the gateway for the service and can be contacted by telephoning 076-1072000 or by accessing their website at the following link www.mabs.ie/abhaile.
The Mortgage to Rent (MTR) scheme introduced in 2012 and administered by the Housing Agency on behalf of my Department is targeted at those households in arrears whose mortgage is unsustainable and who are eligible for social housing support. Under the scheme an eligible household with an unsustainable mortgage goes from being a homeowner to becoming a social housing tenant of an Approved Housing Body (AHB). The borrower voluntarily surrenders their property to their lender who in turn sells the property to an AHB. The AHB becomes the landlord and the household can remain in the family home as a social housing tenant. The tenant pays a differential rent to the AHB, based on their income, which is designed to be affordable. The MTR scheme is an established part of the overall suite of social housing options and an important part of the mortgage arrears resolution process.
A Review of the MTR Scheme, published on 8 February 2017, introduced a range of amendments to the eligibility criteria and administration of the scheme in order to improve its operation. The Review, available at the following link: http://rebuildingireland.ie/news/changes-in-mortgage-to-rent-scheme/, explored the avenues and impediments to participation in the scheme and recommended a number of actions to make the scheme work better for borrowers. My Department and the Housing Agency are working with all stakeholders to ensure that the actions set out in the Review are being effectively implemented to benefit a greater number of households. The eligibility requirements of the scheme were widened to include a greater number of borrowers and a larger number of property types. Increasing awareness and understanding of the scheme has been a priority and a new website - www.mortgagetorent.ie - dedicated to guiding and advising borrowers has been developed. In addition, new structures and arrangements have been put in place to encourage a greater number of entities to take part in the scheme.
For those borrowers in danger of losing their home who are ineligible for the MTR scheme but qualify for social housing support, it is recommended that they engage as early as possible with their local authority regarding their housing needs. A household may be determined by their housing authority to be in need of housing if it has a mortgage that is deemed to be unsustainable under the Mortgage Arrears Resolution Process (MARP), even though the household may, at that time, remain the legal owner(s) of the dwelling concerned. Any household assessed as eligible for social housing support is immediately eligible for support through the Housing Assistance Payment (HAP) scheme. Once a household has been deemed eligible for social housing support, it is a matter for the local authority to examine the suite of social housing supports available, including the HAP scheme, to determine the most appropriate form of social housing support for that household in the administrative area of that local authority.
My Department does not hold data on the number of households whose homes have been repossessed or the potential cost to the Exchequer of supporting these households. My Department does publish a range of housing statistics on social housing delivery mechanisms. This data is available on my Department's website at the following link: https://www.housing.gov.ie/housing/social-housing/social-and-affordble/overall-social-housing-provision.
