Dáil Éireann Debate, Tuesday - 4 April 2017
323. Deputy Declan Breathnach asked the Minister for Housing, Planning, Community and Local Government the number of persons nationally who have availed of the county council shared ownership loans to date in 2017 to purchase their house, by county and in tabular form; the number of those persons who have moved over to the county council annuity loan; and if he will make a statement on the matter. [16338/17]
Amharc ar fhreagra324. Deputy Declan Breathnach asked the Minister for Housing, Planning, Community and Local Government if he will consider providing financial advice to persons who are being asked to switch from a county council shared ownership loan to an annuity loan to assist them in working out which is the best option for them; and if he will make a statement on the matter. [16346/17]
Amharc ar fhreagraI propose to take Questions Nos. 323 and 324 together.
The Government announced the standing down of all affordable housing schemes, including the Shared Ownership Scheme, in 2011, given the changes in the property and lending markets. There are no plans at this time to develop a new Shared Ownership (SO) scheme. From 1991 to 2010, a total of 16,492 loans were issued under the scheme, of which 3,777 remained at the end of Q3 2016. The attached table gives a breakdown of outstanding SO loans by local authority at the end of Q3 2016.
My Department, together with the Housing Agency, the Housing Finance Agency and local authorities, considered the affordability issues facing some borrowers who purchased properties under the SO schemes and devised a more affordable long-term path towards full home ownership. A new restructuring option has been available to SO borrowers since 1 April 2016, which involves rolling-up all outstanding debt into a single annuity loan. The feasibility of this new option for each SO borrower will be determined by their local authority, and may not be appropriate in all cases. For example, in some instances, continuing with the current SO arrangement may be the best option for both the SO borrower and the local authority, or in other cases where the outstanding debt may not be sustainable for the borrower in the long-term, the Local Authority Mortgage to Rent (LAMTR) option might ultimately be the appropriate solution. There is no obligation on any SO borrower to restructure their loan arrangement.
My Department does not currently hold information on the number of SO loans where all outstanding debt has been converted into a single annuity loan under the new restructuring option. As the new restructuring option has now been in place for twelve months, my Department is in the process of engaging with local authorities on their experience to date in offering the option to borrowers, where appropriate.
Local authorities in implementing the restructuring option will direct SO borrowers to seek financial and legal advice prior to accepting any offer of a restructuring option. SO borrowers will be advised by their local authority, in the first instance, to contact the Money Advice and Budgeting Service (MABS) to seek free financial and legal advice. The new Abhaile Service, accessed via MABS, can also assist SO borrowers who are in arrears to access free independent expert financial and legal advice. Full details of the supports offered by the Abhaile Service are available from www.keepingyourhome.ie. Under the restructuring option, local authorities will arrange where SO borrowers require financial and legal advice outside of that provided via MABS, to pay the cost of these fees to a maximum of €1,000 excluding VAT.
Table 1: Shared Ownership Loans by Local Authority Area to end Q3 2016
|
Local Authority |
Total |
|
Carlow County Council |
28 |
|
Cavan County Council |
26 |
|
Clare County Council |
113 |
|
Cork City Council |
71 |
|
Cork County Council |
411 |
|
DLR County Council |
73 |
|
Donegal County Council |
152 |
|
Dublin City Council |
989 |
|
Fingal County Council |
181 |
|
Galway City Council |
13 |
|
Galway County Council |
47 |
|
Kerry County Council |
67 |
|
Kildare County Council |
307 |
|
Kilkenny County Council |
89 |
|
Laois County Council |
200 |
|
Leitrim County Council |
3 |
|
Limerick City and County Council |
119 |
|
Longford County Council |
35 |
|
Louth County Council |
12 |
|
Mayo County Council |
27 |
|
Meath County Council |
61 |
|
Monaghan County Council |
21 |
|
Offaly County Council |
18 |
|
Roscommon County Council |
12 |
|
Sligo County Council |
99 |
|
South Dublin County Council |
127 |
|
Tipperary County Council |
104 |
|
Waterford City and County Council |
214 |
|
Westmeath County Council |
70 |
|
Wexford County Council |
37 |
|
Wicklow County Council |
51 |
|
Grand Total |
3777 |
