Dáil Éireann Debate, Tuesday - 12 February 2013
469. Deputy Martin Heydon asked the Minister for the Environment, Community and Local Government if he will provide an update on the review of the shared ownership scheme operated by local authorities, in particular the annual increases of 4.5% on the rental portion, which is causing financial stress to owners who are trying to manage repayments; and if he will make a statement on the matter. [7218/13]
Amharc ar fhreagraUnder 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.
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. That review is currently advanced and I expect the consultants’ report that informs the review will be published shortly. Any future changes to legislation governing affordable housing schemes, including the shared ownership scheme, will be made in the context of this review.
