Wednesday, 31 January 2018

Ceisteanna (105, 115)

Barry Cowen


105. Deputy Barry Cowen asked the Minister for Housing, Planning and Local Government when the new tenant purchase scheme will be launched; the mortgage approval process associated with same; and if he will make a statement on the matter. [4547/18]

Amharc ar fhreagra

Eamon Scanlon


115. Deputy Eamon Scanlon asked the Minister for Housing, Planning and Local Government when he will introduce measures to allow families that do not have a minimum earned income of €15,000 per annum to purchase their homes under the tenant purchase scheme; and if he will make a statement on the matter. [4339/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Housing)

I propose to take Questions Nos. 105 and 115 together.

The Tenant (Incremental) Purchase Scheme came into operation on 1 January 2016.  The Scheme is open to eligible tenants, including joint tenants, of local authority houses that are available for sale under the Scheme. To be eligible, tenants must meet certain criteria, including having a minimum reckonable income of €15,000 per annum and having been in receipt of social housing support for at least one year.

The financing of any house sold under the Tenant (Incremental) Purchase Scheme is a separate matter from the eligibility criteria for the scheme.  If the tenant is deemed eligible under the scheme, he or she may fund the purchase of a house from one, or a combination, of his / her own resources or a mortgage provided by a financial institution or a local authority house purchase loan.

The minimum reckonable income for eligibility under the scheme is determined by the relevant local authority in accordance with the detailed provisions of the Ministerial Direction issued under Sections 24(3) and (4) of the 2014 Act. In the determination of the minimum reckonable income, local authorities include income from a number of different sources and classes, such as from employment, private pensions, maintenance payments and certain social welfare payments, including pensions, where the social welfare payment is secondary to employment income.

In determining reckonable income, the income of all tenants of the house, including adult children that are joint tenants, is included, as is the income of the spouse, civil partner or other partner / co-habitant of a tenant who lives in the house with them, thus ensuring the appropriate level of discount is applied to the purchase price.

It was for reasons of ensuring the sustainability of the scheme, that the minimum income was introduced.  This was in order to demonstrate an applicant had an income of a long-term and sustainable nature, to ensure that the tenant purchasing the house is in a financial position, as the owner, to maintain and insure the property for the duration of the charged period, in compliance with the conditions of the order transferring the ownership of, and responsibility for, the house from the local authority to the tenant.

In line with the commitment given in the Rebuilding Ireland Action Plan for Housing and Homelessness, a review of the first 12 months of the Tenant Purchase Scheme’s operation has been undertaken. The review has incorporated analysis of comprehensive data received from local authorities regarding the operation of the scheme during 2016 and a wide-ranging public consultation process which took place in 2017 and saw submissions received from individuals, elected representatives and organisations.

The review is now complete and a full report setting out findings and recommendations has been prepared.  I expect to be in a position to publish the outcome of the review shortly.