I propose to take Questions Nos. 2716 and 2719 together.
Purchasers of dwellings under previous affordable housing schemes, including dwellings sold by way of shared ownership at less than market value, have a clawback charge placed on the property. The primary purpose of the clawback regime was to prevent short-term profit-taking on the resale of affordable homes. As such, it should therefore only have effect in the event of the house being sold. However, as a result of the way in which the clawback legislative arrangements are structured, they also have an impact on those wishing to switch mortgage provider or take out an equity release “top-up” mortgage. This arises because of the time-sensitive manner in which charges on property apply.
Part V of the Housing (Miscellaneous Provisions) Act 2009, which I commenced last month, will allow purchasers under the new Affordable Dwelling Purchase arrangements to re-mortgage or top-up their mortgage without triggering the clawback. The Act, however, does not provide this facility retrospectively for purchasers under previous affordable housing or shared ownership arrangements.
I have requested my Department to arrange to have the provisions necessary to address this matter included in the first appropriate legislative vehicle that becomes available.
Statistics in relation to the number of affordable homes delivered under the various schemes can be accessed on my Department's website at the following link: www.housing.gov.ie/housing/statistics/affordable-housing/affordable-housing-and-part-v-statistics.
