Dáil Éireann Debate, Thursday - 27 September 2018
243. Deputy Thomas P. Broughan asked the Minister for Housing, Planning and Local Government if the reintroduction of a shared ownership scheme in partnership with local authorities is being considered for families and persons saving to secure a mortgage in view of the relative success of the previous shared ownership scheme; and if he will make a statement on the matter. [39224/18]
View answerIn 2011, the Government announced the standing down of all affordable housing schemes, including the Shared Ownership scheme, given the changes in the property and lending markets. From 1991 to 2010, some 16,500 loans were issued under the scheme.
While I have no plans at this time to reintroduce the Shared Ownership scheme, I have commenced the provisions in Part 5 of the Housing (Miscellaneous Provisions) Act 2009 to re-introduce an affordable purchase scheme for first-time buyers. Replacing the time-limited claw-back which applied under the various affordable housing schemes in operation previously under the scheme now being introduced, the local authority will have a fully repayable equity stake equivalent to the discount provided (relative to the market price), repayable on re-sale or within the charge period of at least 25 years.
An Affordable Dwellings Fund, managed by the Housing Finance Agency, will be established under the legislation into which funds accruing, in due course, from repayments of equity stakes by purchasers will be lodged, providing a long-run funding stream for affordable housing.
The scheme is targeted at low- to middle-income households with a maximum gross income of less than €50,000 (single applicants) and €75,000 (joint applicants). The new affordable purchase scheme is complementary to other Government schemes which help first-time buyers to buy a home, such as the Help to Buy Scheme and the new Rebuilding Ireland Home Loan.
