Dáil Éireann Debate, Thursday - 11 November 2021
76. Deputy Aindrias Moynihan asked the Minister for Housing, Local Government and Heritage the options that are under consideration for mid-income families who cannot secure sufficient mortgages where financial institutions will not take their rental payments into consideration on their applications; the engagement he has had with the Minister for Finance in relation to same; and if he will make a statement on the matter. [55079/21]
View answerWith regard to issue of mortgage requirements and the assessment by financial institutions of mortgage applications, these requirements are governed by the Central Bank of Ireland which retains independence in the establishment of macro-prudential policy and mortgage measures.
Information in this regard, including on exemptions and other matters, is available at the following Central Bank links:
www.centralbank.ie/consumer-hub/explainers/what-are-the-mortgage-measures,
and
www.centralbank.ie/financial-system/financial-stability/macro-prudential-policy/mortgage-measures,
In relation to housing affordability more broadly, the Housing for All Strategy delivers on the Programme for Government commitment to step up housing supply and put affordability at the heart of the housing system, with an ambitious target of 300,000 homes over the next decade for social, affordable and cost rental, private rental and private ownership housing.
Measures to deliver this housing are supported by over €4 billion in funding annually, representing the highest ever level of Government investment in building social and affordable housing. 54,000 affordable homes interventions will be delivered between now and 2030 to be facilitated by local authorities, Approved Housing Bodies, the Land Development Agency and through a strategic partnership between the State and retail banks.
Following two broad-based Serviced Sites Fund (SSF) calls for proposals to local authorities, funding of almost €200 million was approved in principle in support of 40 infrastructure projects in 14 local authority areas across 9 counties to assist in the delivery of almost 4,200 affordable homes for purchase or for rent.
Delivery of affordable housing, in accordance with the Local Authority Affordable Purchase Scheme established in Part 2 of the Affordable Housing Act 2021 will be underpinned by the preparation by each local authorities Housing Delivery Action Plan.
Part 4 of the Affordable Housing Act provides for the ‘First Home’ scheme to primarily support affordability-constrained first-time buyers to purchase privately developed new homes. This scheme will commence in 2022 and will be available at a national level.
Part 3 of the Affordable Housing Act provides for the establishment of a Cost Rental sector in Ireland, through the designation by the Minister of Cost Rental dwellings. Budget 2021 allocated €35 million to the Cost Rental Equity Loan (CREL) scheme which enabled the first Cost Rental homes to be delivered this year by the Clúid AHB at Taylor Hill, Balbriggan.
The LDA will deliver both homes for affordable purchase and Cost Rental. The Housing for All strategy outlines how the Land Development Agency through Project Tosaigh will seek to unlock stalled developments and accelerate the delivery of affordable homes.
In addition the Help to Buy Scheme and the Local Authority Home loan scheme remain available nationally and make housing more affordable to purchasers.
Further information is available on the dedicated website www.rebuildingirelandhomeloan.ie
For prospective purchasers of newly-built properties, the availability, through the Revenue Commissioners, of the Help to Buy Initiative for first-time buyers may provide additional assistance to prospective applicants for the Rebuilding Ireland Home Loan.
www.revenue.ie/en/property/help-to-buy-incentive/index.aspx
As part of Housing for All, I announced a reformed successor to the Rebuilding Ireland Home Loan Scheme, the 'Local Authority Home Loan'. The Local Authority Home Loan will include an increase in the income ceiling for single applicants.
For counties where the scheme’s house price limit is €320,000 (Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow), the income ceiling for a single applicant will be €65,000. This will be an increase of €15,000 on the €50,000 income ceiling under the current Rebuilding Ireland Home Loan scheme. In the rest of the country where the scheme’s house price limit is €250,000, the income ceiling for a single applicant will remain €50,000. The income ceiling for joint applicants is €75,000. The maximum loan amount will remain €288,000.
I have already implemented a reduction of the mortgage interest rate for new borrowers by 0.25% under the existing Rebuilding Ireland Home Loan (RIHL), as from 10 September 2021. This lower rate will also apply to loans issued under the forthcoming Local Authority Home Loan.
I look forward to announcing further details in respect of the Local Authority Home Loan in the coming months.
