The Programme for Government, ‘Our Shared Future’, clearly lays out our commitment to putting affordability at the heart of the housing system. Government approved priority drafting of the Affordable Housing Bill 2020 on 22 December 2020, the General Scheme of which I published on 20 January last.
The Bill includes provisions to underpin three schemes delivering on the Government’s commitment to prioritise the increased supply of affordable homes through (1) affordable homes for purchase delivered by local authorities, (2) a new affordable purchase shared equity scheme for private homes, and (3) the introduction of a new form of tenure in Cost Rental.
The Affordable Purchase Shared Equity scheme is designed to help bridge the gap, through providing equity support, between the mortgage a household may have access to and the price of the new home they wish to buy. The measure will enable First Time Buyers to buy a new home at a price they can afford, increase housing supply, and help restore confidence in the construction sector.
In availing of the scheme there is no borrowing requirement beyond that already permitted under the Central Bank’s macro-prudential rules. The support provided is in the form of shared equity rather than a loan to households.
Notwithstanding this, officials from my Department and the Department of Finance have been engaging with the Central Bank to consider the schemes interaction with macro prudential rules as well as the proposed operation of the scheme from the perspective of its consumer protection mandate. This process will continue until the conclusion of the scheme's design whereupon the Central Bank will take a final position on the matter.
The Bill has now been approved by Government and I intend to bring the Bill before the Oireachtas in the very near future to allow for the commencement of the Scheme this year.