asked the Minister for Local Government if he is aware that a considerable number of people desirous of buying their own homes are prevented from so doing by the present increased size of deposits; if he has made any estimate of the number of people so affected; and if he plans to introduce any scheme whereby such persons could receive aid in paying the deposit.
Ceisteanna—Questions. Oral Answers. - House Purchase Deposits.
12.
I am not aware that the position is as stated by the Deputy in the first part of the question. The existing loan scheme for new houses provides that subject to a maximum loan of £2,250, housing authorities may lend up to 99 per cent of the value of a house to a borrower who surrenders to them the tenancy of a local authority dwelling and of up to 95 per cent of the value to other persons. The determination of the value of a house for this purpose is a matter entirely for the housing authority and one in which I have no function. If the value of the house as determined by the housing authority for the purpose of deciding the amount of the loan is appreciably lower than the selling price of the house, it naturally follows that the amount of deposit will be increased. It must be appreciated, however, that the local authority has the responsibility for ensuring that the house represents adequate security for the loan and I do not propose to interfere with their discretion in this regard.
I may mention that if a person contends that the housing authority's valuation is too low he may submit his contention for the opinion of the Commissioner of Valuation. Very few such submissions have been made in recent years.
Would the Minister not agree that there has been a considerable increase in deposits required for the purchase of houses in recent times?
I would not agree that there has been a considerable increase in the amount of deposits sought. Officials of the Department of Local Government were in touch with Dublin Corporation and Dublin County Council and they took these typically speculative building schemes in the Dublin Corporation area. The minimum deposits were £624, £470, £351, £597, and £110. The average increase in the deposits would appear to be around £100.
The average does not materialise in that connection and it is quite true to say that the common average is £450 to £500. As these people are members of the working classes, does the Minister not agree that they should be assisted?
The Minister has the position constantly under review but the decision as to the valuation of a house is purely at the discretion of the local authority. The Deputy will understand also that the building societies catering for the more expensive type of house will be outside the scope of the Small Dwellings (Acquisition) Act.