Tuesday, 27 February 2018

Ceisteanna (46, 63)

Brendan Smith

Ceist:

46. Deputy Brendan Smith asked the Minister for Housing, Planning and Local Government his plans to enable persons avail of the tenant purchase scheme that may not have a weekly income apart from a social welfare payment but are in a position from their own means or through family financial support to purchase their council family home; if his attention has been drawn to the fact that the criteria of the scheme is denying such families the opportunity to retain their homes in family ownership; and if he will make a statement on the matter. [9716/18]

Amharc ar fhreagra

Brendan Smith

Ceist:

63. Deputy Brendan Smith asked the Minister for Housing, Planning and Local Government his plans to improve the criteria for the tenant purchase scheme; and if he will make a statement on the matter. [9717/18]

Amharc ar fhreagra

Freagraí scríofa (Ceist ar Housing)

I propose to take Questions Nos. 46 and 63 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 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 can 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.

The minimum income criterion was introduced in order to ensuring the sustainability of the scheme.  Applicants must demonstrate that they have an income that is long-term and sustainable in nature. This ensures 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 Rebuilding Ireland, a review of the first 12 months of the Tenant Purchase Scheme’s operation, including the income eligibility criteria referred to by the Deputy,  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 has been prepared setting out findings and recommendations including one relating to the issue of the minimum reckonable income criterion which the Deputy has referred to. In finalising the report some further inter-Departmental consultation was necessary and due consideration had to be given to possible implementation arrangements. These matters are now almost completed and I expect to be in a position to publish the outcome of the review shortly.