Léim ar aghaidh chuig an bpríomhábhar
Gnáthamharc

Dáil Éireann díospóireacht -
Wednesday, 4 Dec 1991

Vol. 414 No. 1

Adjournment Debate. - Tenant Purchase Scheme.

I am grateful to have the opportunity to raise this matter on the Adjournment. Local authority tenants in Dublin were last given the opportunity to purchase their houses during the Millennium. The same situation applies throughout the country. However in Dublin a large number of tenants who applied to purchase their houses during the Millennium still have not completed the transaction and signed the deeds of ownership: the process has been slowed down at the local authority end because of the need for resources and support from the Department of the Environment.

The practice in the past was that, if not every year at least on a very regular basis, new local authority sale schemes would issue; but there has been none since the much heralded tenant purchase scheme in the Millennium year. People who did not take the opportunity to purchase their local authority house during the Millennium have not been able to purchase their local authority house since then. Despite numerous requests to the Minister for the Environment, he has given no indication in the recent past that he intends to remedy this by introducing another tenant purchase scheme. What effect does this have on the local authority tenants, who may be living in a house for up to 40 years? If an elderly widow who has not purchased her house passes on, the house reverts to the local authority despite the fact that she may have been a tenant for 40 years. She may have paid for the property many times over, but she does not now have the opportunity to will it to her relatives. This is grossly unfair. It is now the best part of four years since local authority tenants were given the opportunity to purchase their houses.

Not only should people who want to purchase their houses be allowed to do so but people living in local authority flats and maisonettes should also be allowed to do so. I have been instrumental in informing the Department of the Environment through pointing out to the local authority how such schemes work in other countries. Yet despite our efforts over the years to press the Department to allow the local authority sell the flats and maisonettes to the tenants they are still saying there are legal problems because someone has to be made responsible for the roof, the drain pipes and the gardens. Who is responsible for the maintenance of the roof and drains in flat complexes in England? The schemes in England have worked very well for a very long time and why can we not find a way of doing the same here? Indeed what arrangements are made for the maintenance of the roof and drains in private apartment blocks? Surely it should be possible to use this as a precedent. Why has it taken so long to allow this to happen?

There are many corporation flat complexes in inner city Dublin that would benefit greatly if individual flats were sold off to the tenants because people would now have a vested interest in refurbishing the flats. The Government have been very remiss in not providing a tenant purchase scheme. It is nothing short of outrageous that people have not been able to apply to purchase their homes for almost four years. There used to be a very regular straightforward tenant purchase scheme.

In conclusion, will the Minister introduce a scheme immediately? Many people are now paying more in rent than they would pay to purchase their house. It is grossly unfair that that should be the case. I ask the Minister to introduce a new tenant purchase scheme.

The 1988 tenant purchase scheme referred to by the Deputy was a special once-off scheme which offered very generous terms to encourage the maximum number of tenants to become the owners of the houses in which they lived. Under the terms of the scheme, which applied countrywide, tenants were able to acquire their houses at less than 50 per cent of the market value. The scheme proved to be very popular, with a total of over 40,000 applications to purchase being received by authorities, and over 30,000 sales have been completed to date.

There was a huge interest in the scheme in Dublin and Dublin Corporation received almost 11,000 applications. While the corporation have made considerable progress in finalising sales there are still approximately 3,800 applications in respect of houses and flats awaiting completion. Certain difficulties have arisen in relation to the sale of flats and the forthcoming Housing Bill will include new provisions to overcome these problems. I appreciate the pressure which the administration of the scheme has put on the staff of Dublin Corporation but I am anxious that the remaining sales should be cleared as quickly as possible and the backlog reduced before another scheme is introduced.

The promotion of home ownership remains a plank of the Government's housing policy. The main threat of the social housing plan launched earlier this year is to reduce the traditional degree of dependence on local authority housing by the introduction of a range of new measures to provide for a better choice in housing, thus leading to a more efficient and equitable use of the available resources. A number of new schemes is specifically aimed at local authority tenants who wish to become owner-occupiers. The options include the mortgage allowance scheme, the shared ownership scheme, increases in the local authority house purchase loan and income limits and the provision of subsidised sites. These new options have been devised to bring about changes in the functions of local authorities in the social housing area. They widen the approach to meeting housing needs from an overwhelming emphasis on building dwellings for renting. It is important of course, that local authorities should have a pool of houses available from which vacancies are generated for letting to persons for whom other schemes in the plan are not a feasible option. It is necessary that the new options in the plan be given time to be fully implemented and assessed and that local authorities should be allowed fulfil their new promotional and enabling role in housing. I am anxious that local authorities should concentrate their efforts on promoting the new measures, focus resources on their implementation and realise their full potential on terms of meeting the social housing need.

In 1988, 40,000 houses were sold to the local authority tenants and it must be admitted that this was a very good response to the scheme.

The Government should bring in a new scheme.

In all the circumstances, there are no immediate plans to introduce a new tenant purchase scheme——

That is grossly unfair.

However, let me say that I will keep the matter under review. The Deputy will appreciate that the 1988 scheme was very good.

I will be asking again shortly about the tenant purchase scheme.

Barr
Roinn