Dáil Éireann Debate, Wednesday - 19 January 2022
493. Deputy Cian O'Callaghan asked the Minister for Housing, Local Government and Heritage the amount spent by each local authority on the mortgage-to-rent scheme since its introduction in 2015; the number of properties those payments relate to by local authority in tabular form; and if he will make a statement on the matter. [63543/21]
View answerThe Mortgage to Rent (MTR) scheme was introduced for local authority borrowers initially as a pilot in 2013, and has been in place nationally since 2014. Under the scheme, a local authority can acquire ownership of properties with unsustainable local authority mortgages, thus enabling the household to remain in their home as social housing tenants. From its inception in 2013 to end 2020, the Local Authority Mortgage to Rent scheme has benefited a total of 532 households.
Payments made to Local Authorities from 2013 – 2020 in relation to the Mortgage to Rent scheme, along with the number of properties these payments relate to, are available on the Department's website via the following link. Information relating to 2021 payments will be made available shortly.
www.gov.ie/en/collection/42d2f-local-authority-loan-activity/#local-authority-mortgage-to-rent-scheme > refer to the section “Local Authority Mortgage to Rent scheme”.
The following local authority costs are funded by the Department. Local authorities must use funding received under the Local Authority Mortgage to Rent scheme to re-pay the corresponding loan with the Housing Finance Agency.
- The Property Ownership Transfer Price (Open Market Value of the property minus the cost of essential repairs, as agreed by the borrower and the local authority)
- Vouched essential repair costs (repairs that are required to ensure that the property meets the minimum standards for rented accommodation)
- Up to 1.5% of the Open Market Value in respect of vouched local authority legal and valuation costs
The local authority can also draw down an amount to the maximum of €1,230 (€1,000 plus 23% VAT) towards the borrower's vouched costs, which include a contribution to their legal and debt advice and, where appropriate, valuation costs.
