Vol. 514 No. 3
250 Mr. Dennehy asked the Minister for the Environment and Local Government if his attention has been drawn to the fact that house prices for potential tenant purchasers in the Cork Corporation area have increased by up to 80% within three years; the proposals, if any, he has to alleviate the difficulties facing purchasers; and if he will increase the tenancy allowance. [4067/00]
Under the terms of the tenant purchase scheme, a tenant of a local authority house for at least one year may apply to the local authority to purchase the house. The price of the house is based on its market value, as determined by the local authority. Valuations stand for such period, not exceeding 12 months, as the local authority sees fit. Any increase in the market value due to improvements by the tenant is disregarded in calculating the price. In order to assist tenants to purchase their homes, a discount of 3% of the value of the house is allowed for each year of tenancy, up to a maximum discount of 30% with a further discount of £3,000. Thus, a local authority house with a market value of £60,000 would be available for purchase by a tenant of ten years standing at £39,000 with the price fixed for up to 12 months. Furthermore, a shared ownership option is available to enable a tenant to buy a share in the house now and the remainder within 25 years.
The proceeds of the sale of local authority houses to tenants are used to part fund the local authority housing programme. I consider that the terms of the present scheme strike a reasonable balance between the aspirations of existing tenants to own their homes and the needs of those on local authority waiting lists. I have, therefore, no proposals to amend the terms of the current scheme.
