Dáil Éireann Debate, Tuesday - 22 March 2016
539. Deputy Robert Troy asked the Minister for the Environment, Community and Local Government the number of mortgage to rent schemes which have been approved since the scheme was announced; and his plans to amend the qualifying criteria for same. [5150/16]
Amharc ar fhreagra540. Deputy Catherine Murphy asked the Minister for the Environment, Community and Local Government how many applications under the mortgage to rent scheme were assessed in the past three financial years; how many were successfully adopted onto the scheme; and if he will make a statement on the matter. [5244/16]
Amharc ar fhreagraI propose to take Questions Nos. 539 and 540 together.
My Department has developed two Mortgage to Rent schemes - one which is available to borrowers of private commercial lending institutions and a separate scheme for local authority borrowers.
The Local Authority Mortgage to Rent (LAMTR) scheme has been developed specifically for local authority mortgage borrowers, as part of the Mortgage Arrears Resolution Process (MARP) arrangements which operates in local authorities. The Scheme was piloted in Dublin City and Westmeath County Councils in 2013 and rolled out nationally in 2014. In total, 195 LAMTR cases have been completed to date with a significant number of other cases being progressed by local authorities in the context of their operation of the MARP.
The LAMTR scheme is similar to the scheme for borrowers with mortgages from private commercial lending institutions, insofar as it also targets low income families whose mortgage situation is unsustainable and where there is little or no prospect of a significant change in circumstances in the foreseeable future. Both schemes also ensure that the family remains in their home . In the case of LAMTR, ownership of the home is transferred to a local authority, rather than to an Approved Housing Body (AHB) as is the case under the MTR scheme in the private lending sector. Both schemes require the household to be eligible for social housing in order to access to the scheme.
At the end of February 2016, a total of 785 cases were either complete or being actively progressed under the Mortgage to Rent (MTR) Scheme for borrowers of private commercial lending institutions. Of these 150 cases had completed all stages of the process. In total, since the introduction of the Scheme in 2012, 3,256 cases had been submitted. There are a variety of reasons why cases have not progressed including the householder’s circumstances improving during the process, no social housing demand in the area, the householder’s income being in excess of the statutory limits for eligibility for social housing, and poor condition of the property. My Department continues to work together with the agencies involved with the Scheme including lenders, to streamline the administrative process and ensure that all potential cases are dealt with speedily and efficiently.
In addition, the package of commitments on mortgage arrears announced by Government in May 2015 included a number of amendments to the Mortgage to Rent Scheme which will enable more properties to qualify, and make it more flexible and accessible to borrowers. Amendments made with effect from July 2015 include raising the valuation thresholds for properties, flexibility in relation to the size of properties, more efficient assessment of a borrower’s eligibility for social housing support and flexibility to allow cases of marginal positive equity to avail of the scheme. Additional financial support has been made available by increasing the ceiling of support under the Capital Advance Leasing Facility (CALF) for MTR cases from 30% to 40%.
My Department continues to keep the operation of both Mortgage to Rent schemes under review.
