Dáil Éireann Debate, Thursday - 28 June 2012
184 Deputy Bernard J. Durkan asked the Minister for the Environment, Community and Local Government when it will be possible to introduce a local authority loans system to facilitate the needs of first time house buyers in the medium to lower income sector; and if he will make a statement on the matter. [31446/12]
Amharc ar fhreagraThere are already two types of house purchase loan available from local authorities: standard annuity loans targeted at lower income first time buyers and those under the Home Choice Loan scheme which are available to qualifying middle income first time buyers affected by the "credit crunch".
The terms and conditions governing the operation, including eligibility terms, of annuity mortgages and the Home Choice Loan are set out under the Housing (Local Authority Loans) Regulations 2009 and the Housing (Home Choice Loan) Regulations 2009 respectively. These are available on my Department's website:www.environ.ie. There has been a low rate of uptake which suggests that access to credit is just one of a number of reasons for the low level of transactions in the housing market at present and that wider economic sentiment has a more significant impact on sentiment in the housing market.
It is not the intention of this scheme — or of any other Government intervention in the housing sector — to incentivise or entice people into the market. It is not intended therefore that the Home Choice loan would be modified to offer any such inducement or offer. It is designed only to facilitate credit worthy households who have been affected by conditions in the mortgage market.
As such, the scheme is a temporary one which will be withdrawn once conditions in credit markets return to normal patterns. Recent data published by the Central Bank would indicate that that point has not yet been reached.
