Dáil Éireann Debate, Thursday - 17 December 2020
346. Deputy Brendan Smith asked the Minister for Housing, Local Government and Heritage if income eligibility limits will be improved for social housing for areas such as counties Cavan and Monaghan in which the existing limits are very low and causing difficulties for many families who have little hope of obtaining a mortgage or home loan; and if he will make a statement on the matter. [44434/20]
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 under way. 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.
In relation to affordable housing supports more generally, measures such as the Help to Buy Scheme and the Rebuilding Ireland Home Loan, are available to eligible purchasers nationally to make home ownership more affordable.
An enhanced Help to Buy scheme was announced as part of the €7 billion July stimulus package, which was extended to December 2021 as part of Budget 2021. This allows first-time buyers purchasing a newly-built home – or building one themselves – to claim back up to €30,000 paid in income tax and DIRT on bank deposit interest over the last four years.
Full details of the Help to Buy initiative are available on the Revenue website.
The Rebuilding Ireland Home Loan is a Government-backed mortgage which is for first-time-buyers nationwide to purchase a new or second-hand home or to self-build. This scheme offers loans on competitive terms to those who are unable to secure a commercial bank loan. Full details of the scheme are available on the Rebuilding Ireland Home Loan website.
Funding of €75 million in Budget 2021 has been be allocated to a new National Affordable Purchase Shared Equity Scheme, which will be introduced in 2021. I intend to target this scheme at first time buyers including single persons, who are seeking to buy a new home but who cannot quite secure the full mortgage amount to do so at the present time. Subject to the final qualifying criteria, a limited equity stake would be taken in a property, in order to help more people meet the cost of buying their new home with their available mortgage.
To this end, significant preparatory work has already been carried out by my Department working primarily with the Housing Agency and the Department of Finance. Intensive engagement is progressing with key stakeholders informing the final detailed parameters of the scheme, as well as with home builders to seek to increase the output of new homes in response to the new scheme.
It is envisaged that the homes delivered under this scheme and the local authority led affordable dwelling purchase arrangements will be made available to applicants who meet defined eligibility criteria. I intend to bring forward any necessary provisions to underpin these schemes in a forthcoming Affordable Housing Bill which I intend to bring to Government in the coming weeks.
