Dáil Éireann Debate, Tuesday - 6 October 2020
34. Deputy Éamon Ó Cuív asked the Minister for Housing, Local Government and Heritage when he plans to amend the terms and conditions of the Tenant (Incremental) Purchase Scheme 2016; and if he will make a statement on the matter. [28223/20]
View answer67. Deputy Pauline Tully asked the Minister for Housing, Local Government and Heritage if the criteria for the tenant purchase scheme will be reviewed to permit pensioners to purchase their local authority houses in cases in which they can show the means to be able to do so; and if he will make a statement on the matter. [27757/20]
View answerMy question relates to the tenant incremental purchase scheme of 2016. This is the most unsuccessful tenant purchase scheme ever. The Minister of State will probably agree with me. Can he let me know when he will bring in the radical changes to the scheme that are urgently needed?
I propose to take Questions Nos. 34 and 67 together.
I thank Deputy Ó Cuív for the question. The programme for Government commits to maintaining the right of social housing tenants to purchase their own homes with some changes to eligibility. The current tenant incremental purchase scheme 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 income level was introduced to ensure the sustainability of the scheme. Applicants must demonstrate that they have an income that is long-term and sustainable in nature to ensure 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.
A review of the operation of the first 12 months of the scheme has been prepared. The review and the commitments in the programme for Government are being examined. All of these issues raised, including the position regarding pensioners wishing to purchase under the scheme, are being considered. My Department is preparing a submission on this and other social housing reform matters, and we expect we will be in a position to make decisions and changes to the scheme in early course.
The Deputies will be aware that under the programme for Government, a number of issues were raised. As Minister of State, they are the guide rails I have to go by. Under the programme for Government, as in the Act, there is a requirement that local authorities have first call on the purchase, that the discount rate be revised and that the applicant has resided in the home for over a year, a period that should be increased.
I thank the Minister for his reply. When was the review completed? He said he hoped to bring proposals forward soon. I have heard that for three or four years. I mean no disrespect to the current Government, but the word "soon" is one of the most misused words in the House. Can the Minister of State tell me whether "soon" is before Christmas, before Easter or before this time next year?
Can the Minister of State tell me how has the Department decided that a pensioner who can put cash on a table to buy a house would be unable to subsequently pay for the insurance and maintenance of that house? There are people, in particular in rural areas, who are living in council houses built on their land who can buy a house because they have worked hard all of their lives. They cannot buy houses because of the rules. Can the Minister of State explain what is the logic in believing that someone who can buy a house for cash would not be able to maintain and insure it?
I wholeheartedly endorse every comment my colleague, Deputy Ó Cuív, has made. I recently wrote to the Minister, Deputy Darragh O'Brien, about two cases. I was involved, as a public representative, in getting two pensioners a council house almost 30 years ago. They provided a site. Neither applicant ever had the State spend one bob on the house since it was built by the council nearly 30 years ago. They have the cash to buy the house. It is in the middle of the small bit of land they have, which is a typical small farm in County Cavan. They should not be deprived of the opportunity to buy their home. I appeal to the Minister and Minister of State, along with my colleague, to change that crazy regulation.
A person who recently retired received a cash payment, but when she wanted to buy her council house she could not do so because she has no income and is in receipt of a pension. She is in a catch-22 situation. She thought she would be able to buy the house when she retired. Another lady, who unfortunately was in a severe car accident and is now in a wheelchair, received a large sum of money but as a result of these criteria cannot buy a house. I agree with the two Deputies that something has to be looked at.
I thank each of the Deputies for their questions. In line with the programme for Government, the review which had been commenced has to be refined, because of the agreement that was made regarding the three issues I alluded to in the programme for Government.
We have to be very careful as Deputies when we are talking about cash buyers buying local authority housing. We have to be very careful about the rules we set. They have a knock-on effect on every applicant throughout the country. While there are very genuine cases, we have to be very careful about the rules we apply to ensure that they are fair in terms of the local authority stock and that they are giving pensioners who have money, resources and certainty a chance to purchase their homes. It cannot be the case that someone who has cash can buy a local authority house. People should know the reasons for that.
The Minister of State did not tell me when the review was completed. A review was completed. The Minister of State did not give me the definition of the magic word in the English language, "soon". I would like a definition of what he calls "soon" because I have heard the word for three years. I do not know if that is because it rhymes with zoom, but we need to get zoom into this soon.
He seemed to imply that I or anybody else thought any person other than a tenant or joint tenant could buy a house.
Is the Minister of State saying there should be restrictions on the ability of joint tenants or tenants to buy a local authority house? Nobody is proposing to widen the eligibility criteria applying to those who can buy those houses, certainly not me.
Can the Minister of State explain why the Department believes maintaining and insuring the house creates unaffordability given that in many cases involving people with part-time jobs, the repayment would be less than the rent?
Does the Minister of State have his Collins English Dictionary with him?
Yes, it is ready and present. To be clear, the review had been completed and has to be revised to take into account what was agreed by the three parties and unanimously adopted by their membership. That will happen shortly. I cannot give an exact timeframe for that because I do not know. That is the honest answer.
Are we talking about three or six months?
We are talking about three months. We are doing the budget at the moment, which takes priority, but it will be as soon as possible. Politicians are mad for people to put an exact date on things, but things can happen beyond our control, especially in this Department. We have many matters to respond to every day and we are trying to negotiate a significant budget.
I am not proposing to change the terms of the scheme to preclude any tenants or joint tenants from taking part in it. However, we have to be very careful in the rules that we have. Any income thresholds that are set need to be sustainable. No one wants to put people into an unsustainable position where they cannot service their repayments.
If I may make one point, please. The Minister of State seemed to cast some doubt in suggesting we need to watch out for a person with cash to buy a house. I was talking about the case of honourable persons who, through hard work and support from other individual family members, are in a position to buy out their house. There would be no question mark over the authenticity, provenance or source of the funding that they would use to buy their local authority house.
That is an important clarification.
That is why I said that the majority of cases are genuine. I was at pains to point that out.
We move next to Deputy Richmond. Níl sé anseo. We will take the next question from Deputy Paul Murphy.
