Dáil Éireann Debate, Thursday - 29 March 2018
458. Deputy Michael McGrath asked the Minister for Housing, Planning and Local Government the reforms made to the mortgage to rent scheme; the date on which such reforms were implemented; the number of applications to the mortgage to rent scheme made each month in 2016 and 2017; the number of successful mortgage to rent applications each month in 2016 and 2017; and if he will make a statement on the matter. [14828/18]
Amharc ar fhreagraFollowing a Review of the Mortgage to Rent (MTR) Scheme, published on 8 February 2017, a range of amendments to the eligibility criteria and administration of the MTR scheme came into effect to enable more properties to qualify and to make the scheme more flexible and accessible to borrowers. The Review, available at the following link http://rebuildingireland.ie/news/changes-in-mortgage-to-rent-scheme/, explored the impediments to participation in the scheme and recommended a number of actions to make the scheme work better for borrowers. My Department and the Housing Agency are working with all stakeholders to ensure that the actions set out in the Review are being effectively implemented to benefit a greater number of households.
The following table gives a breakdown of MTR applications received each month during 2016 and 2017. In terms of changes to the eligibility criteria, the property price thresholds were increased and more flexibility was provided in respect of the size of properties that could qualify for the scheme. The changes to the MTR eligibility criteria and other process changes came into effect on 27 March 2017 and therefore applications received from April onwards should be regarded as applications submitted under the revised MTR scheme. One of the changes to the MTR process is that the borrower must be approved by their local authority for social housing support prior to the submission of a completed MTR application to the Housing Agency. This process change may have impacted the number of MTR applications received by the Housing Agency in the initial months subsequent to the implementation of the process changes arising from the review recommendations.
|
Number of MTR applications received |
||
|
Month |
2016 |
2017 |
|
January |
28 |
47 |
|
February |
47 |
14 |
|
March |
27 |
36 |
|
April |
30 |
4 |
|
May |
63 |
3 |
|
June |
23 |
15 |
|
July |
33 |
31 |
|
August |
24 |
15 |
|
September |
42 |
25 |
|
October |
16 |
29 |
|
November |
38 |
32 |
|
December |
23 |
31 |
|
Total |
394 |
282 |
The Housing Agency publishes, on a quarterly basis, detailed statistical information on the operation of the MTR scheme, including the number of completed transactions. This information is available on the Agency's website at the following link:
https://www.housingagency.ie/our-services/housing-supply-services/mortgage-to-rent.aspx.
The MTR Review also concluded that the current financial model of the scheme may not, in its current configuration, be capable of delivering the scale of successful cases that could benefit from the scheme over time. In order to test the operability of alternative funding models for the scheme, the Housing Agency has been working with a number of financial entities who have expressed an interest in working with the MTR scheme to progress a number of alternative long-term lease arrangements. A call for Expressions of Interest from bodies interested in pursing pilot operating models was initiated by the Housing Agency and the submission(s) received are currently being reviewed by the Agency, who will make recommendations to my Department as to the make-up of the pilots, which can then be initiated.
