Dáil Éireann Debate, Thursday - 9 November 2017
284. Deputy Éamon Ó Cuív asked the Minister for Housing, Planning and Local Government his plans to increase the income limits for eligibility for social housing (details supplied); and if he will make a statement on the matter. [47464/17]
Amharc ar fhreagraThe Social Housing Assessment Regulations 2011 prescribe maximum net income limits for each housing authority, in different bands according to the area, with income being defined and assessed according to a standard Household Means Policy.
The income bands and the authority area assigned to each band were based on an assessment of the income needed to provide for a household's basic needs, plus a comparative analysis of the local rental cost of housing accommodation across the country. The limits also reflect a blanket increase of €5,000 introduced prior to the new system coming into operation, in order to broaden the base from which social housing tenants are drawn and thereby promote sustainable communities.
Given the cost to the State of providing social housing, it is considered prudent and fair to direct resources to those most in need of social housing support. The current income eligibility requirements generally achieve this, providing for a fair and equitable system of identifying those households facing the greatest challenge in meeting their accommodation needs from their own resources.
As part of the broader social housing reform agenda, a review of the income eligibility limits for social housing supports has commenced. I would expect the results of this review to be available for publication in 2018.
The Government is very aware of the general rise in house prices and in response, my Department has examined housing affordability in consultation with the Housing Agency, local authorities and other stakeholders as part of the targeted review of Rebuilding Ireland. The review is now at an advanced stage and I expect to be in a position to announce details of the outcome, including any additional measures, in the coming weeks.
It is important to note that there are currently two house purchase loan offerings available to lower income first time buyers from local authorities.
The first is a standard annuity mortgage available from all local authorities. The relevant terms and conditions applying to local authority housing loans are set out in the Housing (Local Authority Loans) Regulations 2012. Key eligibility criteria provide that a loan applicant must be a first time buyer and must be able to show their local authority that they cannot get a loan from a bank or building society. Also, the gross income (before tax) of a single income household in the previous year must be €50,000 or less and the combined gross income (before tax) of a two income household in the previous year must be €75,000 or less. The loan is subject to a maximum amount of €200,000 and can be used to finance up to 97% of the purchase price of a new or second hand property or the applicant can use it to finance the building of their own home. Further more detailed information is available from all local authorities.
The second option is the Home Choice Loan, a Government-backed mortgage for first time buyers. First time buyers can apply for a Home Choice Loan to purchase a new or second hand property or build their own home. Home Choice Loan provides up to 92% of the market value of a property purchased, subject to a maximum loan amount of €285,000. Home Choice Loan offers one variable interest rate. The rate is currently set at 3.25% variable, APR 3.30%. Further information is available at http://www.homechoiceloan.ie.
