I propose to take Questions Nos. 168 and 169 together.
My Department issued comprehensive guidance to local authorities on the treatment of mortgage arrears, including local authority mortgages for shared ownership transactions, in March 2010. That guidance was closely based on the Central Bank's first statutory Code of Conduct on Mortgage Arrears to ensure that cases of local authority mortgage arrears are handled in a manner that is sympathetic to the needs of the particular household, while also protecting the position of the local authority concerned.To reflect the content of the Central Bank's revised Code of Conduct — which replaced the previous code from 1 January 2011 and was informed by the deliberations of the Expert Group on Mortgage Arrears and Personal Debt — my Department is currently preparing updated guidance to local authorities in consultation with the City and County Managers Association. This will further enable local authorities to provide a range of flexible repayment options for households in difficulty. In relation to shared ownership specifically, the full review of Part V of the Planning and Development Act 2000 announced in the Government's housing policy statement in June 2011 has been broadened to include an examination of the shared ownership scheme.
Where any borrower, either from a local authority or from a private financial institution, is facing difficulties in meeting mortgage repayments, they should engage proactively and constructively with the lender to seek to achieve an agreed solution. The services of the Money Advice and Budgeting Service are also available to such borrowers and support is available through the Supplementary Welfare Allowance Scheme.
In addition, section 34 of Housing (Miscellaneous Provisions) Act 2009 provides local authorities with powers to deal flexibly with distressed borrowers.
My Department has recently commenced the collation of data from local authorities on the number of loans in arrears broken down by the length of time in arrears. The data to end of September 2011 indicate that 6,202 of all local authority mortgages (including those drawn down for the purposes of purchasing houses under the various affordable housing schemes, including shared ownership and tenant purchase) are in arrears of more than 90 days. This represents 27.5% of the total number of loans. The table below provides the data on a county by county basis. My Department does not collect information in relation to payments on the subsidy element of shared ownership loans.
The use of 90 days as a comparative metric in considering the level of arrears is consistent with the approach adopted by the Central Bank in compiling information in respect of private lenders' loans. The Central Bank's data show that 8.1% of mortgages in the private sector are now either in arrears for more than 90 days or have been restructured. It is to be expected that the rate of arrears among local authority mortgage holders would be higher than the rate of arrears generally given local authorities' position as lenders of last resort.
|
|
Number of LA loans in arrears
|
Year
|
QTR
|
Between 91-180 days in arrears
|
Over 180 days in arrears
|
Total over 90 days
|
Loans in arrears as a % of the total loan book
|
2010
|
Q1
|
1,769
|
3,657
|
5,426
|
24.2%
|
|
Q2
|
1,878
|
4,121
|
5,999
|
24.6%
|
|
Q3
|
1,723
|
4,307
|
6,030
|
24.8%
|
|
Q4
|
1,577
|
4,488
|
6,065
|
25.4%
|
2011
|
Q1
|
1,506
|
4,501
|
6,007
|
25.5%
|
|
Q2
|
1,656
|
4,541
|
6,197
|
26.8%
|
|
Q3
|
1,555
|
4,647
|
6,202
|
27.5%
|
|
Q4 2010
|
Q3 2011
|
At the end of:
|
Number of loans in arrears over 90 days
|
Value of loans in arrears over 90 days
|
Number of loans in arrears over 90 days
|
Value of loans in arrears over 90 days
|
County Councils
|
|
|
|
|
Carlow
|
39
|
1,672,633
|
43
|
2,096,177
|
Cavan
|
84
|
1,201,450
|
79
|
1,170,415
|
Clare
|
209
|
3,711,999
|
193
|
3,769,998
|
Cork
|
259
|
2,045,459
|
347
|
17,158,442
|
Donegal
|
144
|
4,195,405
|
160
|
5,597,229
|
DL/Rathdown
|
118
|
4,178,006
|
108
|
5,521,327
|
Fingal
|
129
|
8,229,866
|
161
|
12,123,891
|
Galway
|
172
|
6,313,240
|
176
|
6,278,839
|
Kerry
|
163
|
2,845,267
|
143
|
2,846,849
|
Kildare
|
400
|
15,846,719
|
427
|
17,405,106
|
Kilkenny
|
208
|
7,021,114
|
249
|
8,248,005
|
Laois
|
240
|
12,190,148
|
249
|
14,325,289
|
Leitrim
|
27
|
251,408
|
27
|
189,693
|
Limerick
|
168
|
1,944,936
|
157
|
2,049,067
|
Longford
|
105
|
2,046,314
|
107
|
2,947,402
|
Louth
|
145
|
2,539,390
|
130
|
4,137,386
|
Mayo
|
334
|
6,796,155
|
312
|
6,821,825
|
Meath
|
161
|
2,802,784
|
137
|
3,854,656
|
Monaghan
|
103
|
1,049,102
|
114
|
1,891,629
|
North Tipperary
|
106
|
2,333,256
|
95
|
2,376,940
|
Offaly
|
116
|
1,356,676
|
106
|
1,727,466
|
Roscommon
|
113
|
771,036
|
98
|
770,770
|
Sligo
|
211
|
5,947,656
|
246
|
5,860,541
|
South Dublin
|
126
|
8,190,747
|
131
|
9,086,310
|
South Tipperary
|
154
|
3,238,126
|
166
|
3,277,589
|
Waterford
|
100
|
3,470,772
|
98
|
4,128,535
|
Westmeath
|
334
|
15,528,930
|
332
|
15,884,963
|
Wexford
|
152
|
5,800,178
|
148
|
7,472,113
|
Wicklow
|
132
|
5,781,818
|
121
|
5,678,251
|
|
|
|
|
|
City Councils
|
|
|
|
|
Cork
|
222
|
4,002,870
|
201
|
4,596,713
|
Dublin
|
689
|
6,743,131
|
800
|
8,288,657
|
Galway
|
98
|
6,316,974
|
94
|
5,597,594
|
Limerick
|
136
|
1,681,138
|
78
|
1,367,091
|
Waterford
|
168
|
9,300,798
|
169
|
9,686,001
|
Total
|
6,065
|
167,345,501
|
6,202
|
204,232,759
|