Dáil Éireann Debate, Tuesday - 27 March 2018
622. Deputy Martin Kenny asked the Minister for Housing, Planning and Local Government when he plans to publish the review of the local authority tenant purchase scheme; and if he will make a statement on the matter. [13739/18]
Amharc ar fhreagra623. Deputy Martin Kenny asked the Minister for Housing, Planning and Local Government if local authority tenants in receipt of social welfare payment and who may have savings will be allowed the opportunity to purchase their home under the local authority tenant purchase scheme; and if he will make a statement on the matter. [13740/18]
Amharc ar fhreagraI propose to take Questions Nos. 622 and 623 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 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.
The minimum income criterion was introduced in order to ensure 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.
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.
In line with the commitment given in Rebuilding Ireland, 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 has been prepared setting out findings and recommendations. In finalising the report due consideration had to be given to possible arrangements for the implementation of the review recommendations. This is now almost complete and I expect to be in a position to publish the outcome of the review shortly.
