Dáil Éireann Debate, Tuesday - 24 July 2018
2632. Deputy Michael Healy-Rae asked the Minister for Housing, Planning and Local Government if the rent to buy scheme (details supplied) will be reintroduced; and if he will make a statement on the matter. [32930/18]
Amharc ar fhreagraAt present the making of rent schemes and the setting of rent levels is a matter for each local authority under the provisions of the Housing Act 1966.
Considerable work has been carried out by my Department in developing a draft national differential rents framework under section 31 of the Housing (Miscellaneous Provisions) Act 2009. Such a framework had as its main aim the facilitation of a significant harmonisation in local authority rents, including a set of standardised income disregards, whilst retaining the general principle of rents related to household income.
This work is now being examined further in the light of the broader commitment given in the Rebuilding Ireland Action Plan for Housing and Homelessness, to review the disparate systems of differential rent for social housing in place across local authorities. The overall objective is to ensure that housing supports are fair and sustainable, prioritise those on lowest incomes and avoid creating social welfare traps that may prevent people from either returning to work or to the private housing market.
The Government is committed to supporting access to home ownership for lower income households and a range of paths to home ownership will remain in place in that regard. These include the Tenant (Incremental) Purchase Scheme, and the introduction of the Rebuilding Ireland Home Loan which was launched earlier this year. I have no immediate plans to introduce a general rent-to-buy scheme across all local authorities.
The Tenant (Incremental) Purchase Scheme came into operation on 1 January 2016 and provides opportunities for tenants to become homeowners, while also promoting sustainable communities. 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 terms of the scheme involve discounts of 40%, 50% or 60% off the purchase price of the house, linked to tenant income. On the sale of a house under the scheme, the local authority will place an incremental purchase charge on the house equivalent to the discount granted to the tenant. Generally, the charge withers away over a period of 20, 25 or 30 years depending on the level of discount involved.
In line with the commitment given in Rebuilding Ireland, a review of the first 12 months of the 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 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.
