Dáil Éireann Debate, Thursday - 8 March 2012
137 Deputy Bernard J. Durkan asked the Minister for the Environment, Community and Local Government when legislation is expected to improve the shared ownership mortgage scheme with particular reference to the need to facilitate those who find themselves unemployed and the need to enable those wishing to move from inadequate or overcrowded accommodation to family-sized homes; and if he will make a statement on the matter. [13384/12]
Amharc ar fhreagra144 Deputy Bernard J. Durkan asked the Minister for the Environment, Community and Local Government the extent to which he has sought or received information from the various local authorities relating to shared ownership mortgages in distress with particular reference to clarification as to the way the repayments on some such mortgages are higher than ordinary mortgages notwithstanding the fact that only partial equity is involved; if he has received communication from the local authorities with a view to some resolution; and if he will make a statement on the matter. [13391/12]
Amharc ar fhreagraI propose to take Questions Nos. 137 and 144 together.
The review of Part V of the Planning and Development Acts announced in the context of the standing down of affordable housing schemes as part of the Government's housing policy statement will include an examination of the operational aspects of the shared ownership scheme. Any future changes to legislation governing affordable housing schemes will be informed by that review which will shortly commence. My Department recently commenced collating data in respect of local authority mortgage arrears. The latest data available, to end September 2011, show that some 28% of all local authority mortgages are in arrears of 90 days or more. A breakdown of this data by house purchase scheme (e.g. shared ownership, affordable housing, tenant purchase etc.) is not available.
Under the Shared Ownership scheme the rent charged on the local authority's equity in a shared ownership transaction is to cover the funding costs to the Housing Finance Agency which are based on borrowings at the prevailing interest rates. Any difference between the rent and prevailing interest rate is reflected in the capital outstanding on the property, i.e. if the rent charged in any period is greater than the prevailing mortgage interest due on the local authority's share the purchase price of the outstanding equity will be reduced accordingly.
