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Tenant Purchase Scheme Review

Dáil Éireann Debate, Thursday - 19 April 2018

Thursday, 19 April 2018

Ceisteanna (352)

Brendan Smith

Ceist:

352. Deputy Brendan Smith asked the Minister for Housing, Planning and Local Government if improvements will be introduced at an early date to the tenant purchase scheme to enable Part V tenants and tenants in receipt of a social welfare payment who are in a financial position to purchase their homes to participate in this scheme; and if he will make a statement on the matter. [17343/18]

Amharc ar fhreagra

Freagraí scríofa

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 Housing (Miscellaneous Provisions) Act 2014. 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 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 provisions of Part V of the Planning and Development Act 2000, as amended, are designed to enable the development of mixed tenure sustainable communities. Part V units are excluded from the Tenant (Incremental) Purchase Scheme 2016 to ensure that units delivered under this mechanism will remain available for people in need of social housing support and that the original policy goals of the legislation are not eroded over time. The continued development of mixed tenure communities remains very important in promoting social integration.

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 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.

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