Vol. 501 No. 2
288 Ms Shortall asked the Minister for the Environment and Local Government the way in which the shared ownership scheme operates; his views on whether the provisions of the scheme offer a realistic option for house purchase to couples on low incomes; the plans, if any, he has to extend the scheme; and if he will make a statement on the matter. [5683/99]
The shared ownership scheme, which is administered by local authorities, offers home ownership in a number of steps to those who cannot afford full ownership in one step in the traditional way. Under the scheme, the local authority acquires the house selected by the shared owner, who must purchase at least a 40 per cent share in the house and pay rent, at 4.5 per cent for transactions entered into on or after 1 May 1998, on the remainder. The 40 per cent share will normally be funded by way of the required deposit of £1,000 and a mortgage loan from the local authority, but cash may be contributed if the applicant is in a position to do so. The remaining equity must be acquired within 25 years at the original value updated in line with the consumer price index. A graduated rent subsidy is payable under the scheme where the household income is below a specified amount.
