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Tenant Purchase Scheme

Dáil Éireann Debate, Tuesday - 21 July 2020

Tuesday, 21 July 2020

Questions (290, 291)

Michael Ring

Question:

290. Deputy Michael Ring asked the Minister for Housing, Planning and Local Government when recommendations made in the review of the tenant purchase scheme will be progressed; and if he will make a statement on the matter. [16702/20]

View answer

Michael Ring

Question:

291. Deputy Michael Ring asked the Minister for Housing, Planning and Local Government his plans to amend the tenant (incremental) purchase scheme 2016, in particular, the minimum reckonable income requirement which discriminates against many tenants over 66 years of age (details supplied); and if he will make a statement on the matter. [16704/20]

View answer

Written answers

I propose to take Questions Nos. 290 and 291 together.

The Tenant (Incremental) Purchase Scheme, which came into operation on 1 January 2016, 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 2014 Act. 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 financing of any house sold under the Tenant (Incremental) Purchase Scheme is a separate matter from the eligibility criteria for the scheme. If the tenant is deemed eligible under the scheme, he or she may fund the purchase of a house from one, or a combination, of his/her own resources or a mortgage provided by a financial institution or a local authority house purchase loan.

A review of the operation of the first 12 months of the Tenant Purchase (Incremental) Scheme has been recently finalised and a full report has been prepared setting out findings and recommendations.

The Programme for Government commits to maintaining the right of social housing tenants to purchase their own home with some changes to eligibility. The review and the commitments in the Programme for Government are being examined as part of the work on the broader social housing reform agenda. I expect that the review will be published once all the work on these reform measures is completed.

Question No. 292 answered with Question No. 285.

Question No. 291 answered with Question No. 290.
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