Dáil Éireann Debate, Wednesday - 16 December 2020
86. Deputy Duncan Smith asked the Minister for Finance if he has had discussions with the banks about the State purchasing houses that may be unoccupied and owned by the various banks at this time; and if he will make a statement on the matter. [44095/20]
View answer87. Deputy Duncan Smith asked the Minister for Finance the number of unoccupied houses owned by the banks in tabular form; and if he will make a statement on the matter. [44096/20]
View answerI propose to take Questions Nos. 86 and 87 together.
I presume that the Deputy is referring to properties which are in the possession of financial institutions arising from a default on a mortgage loan.
The Central Bank has supplied me with the table below which provides a summary of properties held by both bank and non-bank entities as at end September-2020. The collected data does not provide details on whether the property is currently occupied or not. The Central Bank of Ireland’s Residential Mortgage Arrears, Restructures and Repossession Statistics provides further data in relation to the number of repossessed properties held by both banks and non-bank entities and this is available at:
https://www.centralbank.ie/statistics/data-and-analysis/credit-and-banking-statistics/mortgage-arrears.
Repossessions: Residential properties in possession, as at end-September 2020
|
PDH |
BTL |
Total |
|
|
Banks |
629 |
302 |
931 |
|
Non-Banks |
172 |
89 |
261 |
|
Total |
801 |
391 |
1,192 |
It should be noted that the financial institution does not 'own' the properties in its possession following a mortgage default; instead its purpose is to realise the security for the purposes of repaying the mortgage loan and with any surplus remaining from the sale going to the mortgagor/owner. In fulfilling this sale function the lender is obliged, as far as is reasonably practicable, to obtain the best price reasonably obtainable for the property.
The decision to repossess a property as the result of a mortgage default is ultimately a commercial decision for the lender to make considering all the relevant factors, including that all legal requirements are met. For example, in the case of a mortgage secured on a Primary Dwelling House, the provisions of the Code of Conduct on Mortgage Arrears will apply and the Mortgage Arrears Resolution Process (MARP) will have to be followed.
The Deputy may also wish to note that the Mortgage to Rent (MTR) scheme, which was introduced in 2012, is targeted at those households in mortgage arrears who are eligible for social housing support whose mortgage has been deemed unsustainable by their lender under the MARP and who have very limited options, if any, to meet their long-term housing needs themselves. The scheme provides for an Approved Housing Body or Private Company to acquire ownership of a property with an unsustainable private mortgage from a lender and which will also enable the household to remain in their home as a social housing tenant. The scheme is part of the overall suite of social housing options and is an important part of the Mortgage Arrears Resolution Process.
My colleague, the Minister for Housing, Local Government and Heritage, advises me that up to the end of November 2020, 884 households with unsustainable private mortgages have completed the MTR scheme since its introduction nationally in 2013. The 884 households in the scheme represent 1,493 adults and 1,399 children who have remained living in their homes and communities. There are currently 1,296 active cases being progressed under the scheme.
