Dáil Éireann Debate, Thursday - 30 July 2020
562. Deputy Bernard J. Durkan asked the Minister for Housing, Planning and Local Government the extent to which he anticipates local authority housing or loan qualification income guidelines and conditions might be relaxed in order to facilitate those in search of affordable housing; and if he will make a statement on the matter. [21055/20]
View answerApplications for social housing support are assessed by the relevant local authority, in accordance with the eligibility and need criteria set down in section 20 of the Housing (Miscellaneous Provisions) Act 2009 and the associated Social Housing Assessment Regulations 2011, as amended.
The 2011 Regulations prescribe maximum net income limits for each local authority, in different bands according to the area concerned, with income being defined and assessed according to a standard Household Means Policy. The 2011 Regulations do not provide local authorities with any discretion to exceed the limits that apply to their administrative areas.
Under the Household Means Policy, which applies in all local authorities, net income for social housing assessment is defined as gross household income less income tax, PRSI, Universal Social Charge and Pension-Related Deductions within the meaning of Financial Emergency Measures in the Public Interest Act 2009. The Policy provides for a range of income disregards, and local authorities also have discretion to decide to disregard income that is temporary, short-term or once-off in nature.
The income bands are expressed in terms of a maximum net income threshold for a single-person household, with an allowance of 5% for each additional adult household member, subject to a maximum allowance under this category of 10%; and 2.5% for each child, subject to a maximum allowance under this category of 10%.
The income bands and the authority area assigned to each band were based on an assessment of the income needed to provide for a household's basic needs, plus a comparative analysis of the local rental cost of housing accommodation across the country. It is important to note that the limits introduced at that time also reflected a blanket increase of €5,000 introduced prior to the new system coming into operation, in order to broaden the base from which social housing tenants are drawn, both promoting sustainable communities and also providing a degree of future-proofing.
Given the cost to the State of providing social housing, it is considered prudent and fair to direct resources to those most in need of social housing support. The current income eligibility requirements generally achieve this, providing for a fair and equitable system of identifying those households facing the greatest challenge in meeting their accommodation needs from their own resources.
However, as part of the broader social housing reform agenda, a review of income eligibility for social housing supports in each local authority area is underway. The review will also have regard to current initiatives being brought forward in terms of affordability and cost rental and will be completed when the impacts of these parallel initiatives have been considered.
This Government is absolutely committed to ensuring that affordable, quality housing solutions are available to everyone in Irish society, and this is reflected in the Programme for Government, ‘Our Shared Future’. We will put affordability at the heart of the housing system through the progression of State-backed affordable housing. Affordable Purchase and Cost Rental homes will be delivered on State and public lands through a number of channels, including by local authorities and the Land Development Agency.
Another measure which supports affordability is the Help to Buy Scheme. As part of the €7 billion July stimulus plan, my colleague the Minister for Finance recently confirmed an enhanced version of the Help-to-Buy scheme. This will allow eligible first-time buyers purchasing a newly-built home – or building one themselves – to claim back up to €30,000 in income tax paid and DIRT on bank deposit interest over the last four years. Full details of the Help to Buy initiative are available at https://www.revenue.ie/en/property/help-to-buy-incentive/index.aspx
In addition, following a review of the two existing local authority home loan schemes, the House Purchase Loan and the Home Choice Loan, a new loan offering was introduced, from 1 February 2018, known as the Rebuilding Ireland Home Loan. The loan enables credit worthy first time buyers to access sustainable mortgage lending to purchase new or second-hand properties in a suitable price range.
Single applicants for the loan must not be earning greater than €50,000 gross per annum. The combined income of joint applicants must not be greater than €75,000 per annum. There are no set minimum income limits; however, applicants do need to have sufficient borrowing and repayment capacity and must be capable of repaying the mortgage in accordance with the statutory credit policy underpinning the loan. These income limits are unchanged from the previous local authority loan offerings.
The new Programme for Government " Our Shared Future" contains a commitment to expand the Rebuilding Home Loan.
In terms of affordable housing more generally, I will outline my detailed plans in the Autumn, taking account of progress to date under the various programmes and the input of key delivery partners.
