Tenant Purchase Scheme Review

Dáil Éireann Debate, Tuesday - 13 November 2018

Tuesday, 13 November 2018

Questions (600, 602, 639, 640)

Peter Burke

Question:

600. Deputy Peter Burke asked the Minister for Housing, Planning and Local Government when he plans to publish the tenant purchase scheme review report; and if he will make a statement on the matter. [47251/18]

Charlie McConalogue

Question:

602. Deputy Charlie McConalogue asked the Minister for Housing, Planning and Local Government when the review of the tenant purchase scheme will be finalised and published; and if he will make a statement on the matter. [46481/18]

Brendan Smith

Question:

639. Deputy Brendan Smith asked the Minister for Housing, Planning and Local Government if amendments to the tenant purchase scheme will be introduced to enable tenants who were awarded council houses through Part V regulations to avail of the scheme; and if he will make a statement on the matter. [47091/18]

Brendan Smith

Question:

640. Deputy Brendan Smith asked the Minister for Housing, Planning and Local Government if the conditions of the tenant purchase scheme will be amended to enable tenants whose principal source of income is a payment from the Department of Employment Affairs and Social Protection and who are in a position to purchase their home through their own resources or with family support; and if he will make a statement on the matter. [47092/18]

Written answers

Minister for Housing, Planning and Local Government

I propose to take Questions Nos. 600, 602, 639 and 640 together.

The Tenant (Incremental) Purchase Scheme came into operation on 1 January 2016. The Scheme is open to eligible tenants, including joint tenants, of local authority houses that are available for sale under the Scheme. To be eligible, tenants must meet certain criteria, including having a minimum reckonable income of €15,000 per annum and having been in receipt of social housing support for at least one year.

The minimum reckonable income for eligibility under the scheme is determined by the relevant local authority in accordance with the detailed provisions of the Ministerial Direction issued under Sections 24(3) and (4) of the Housing (Miscellaneous Provisions) Act 2014. In the determination of the minimum reckonable income, local authorities include income from a number of different sources and classes, such as from employment, private pensions, maintenance payments and certain social welfare payments, including pensions, where the social welfare payment is secondary to employment income.

In determining reckonable income, the income of all tenants of the house, including adult children that are joint tenants, is included, as is the income of the spouse, civil partner or other partner/co-habitant of a tenant who lives in the house with them, thus ensuring the appropriate level of discount is applied to the purchase price.

The minimum income criterion was introduced in order to ensure the sustainability of the scheme. Applicants must demonstrate that they have an income that is long-term and sustainable in nature. This ensures that the tenant purchasing the house is in a financial position, as the owner, to maintain and insure the property for the duration of the charged period, in compliance with the conditions of the order transferring the ownership of, and responsibility for, the house from the local authority to the tenant.

The provisions of Part V of the Planning and Development Act 2000, as amended, are designed to enable the development of mixed tenure sustainable communities. Part V units are excluded from the Tenant (Incremental) Purchase Scheme 2016 to ensure that units delivered under this mechanism will remain available for people in need of social housing support and that the original policy goals of the legislation are not eroded over time. The continued development of mixed tenure communities remains central in promoting social integration.

Local authorities may also, within the provisions of the Regulations, exclude certain houses which, in the opinion of the authority, should not be sold for reasons such as proper stock or estate management. It is a matter for each individual local authority to administer the Scheme in its operational area in line with the overarching provisions of the governing legislation for the scheme, and in a manner appropriate to its housing requirements.

In line with the commitment given in Rebuilding Ireland, a review of the first 12 months of the Scheme’s operation, including the issues referred to, has been undertaken. The review is now complete and a full report has been prepared setting out findings and recommendations. I hope to be in a position to publish the review shortly, following completion of consideration of a number of implementation issues arising.