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Tenant Purchase Scheme

Dáil Éireann Debate, Wednesday - 9 September 2020

Wednesday, 9 September 2020

Ceisteanna (124)

Martin Kenny

Ceist:

124. Deputy Martin Kenny asked the Minister for Housing, Local Government and Heritage when the report into the tenant purchase scheme will be published; if the issues relating to income from social welfare and persons over the age of 70 being allowed to purchase a local authority house will be addressed; and if he will make a statement on the matter. [22800/20]

Amharc ar fhreagra

Freagraí scríofa

The Tenant (Incremental) Purchase Scheme which came into operation on 1 January 2016 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 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.

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.

A review of the first 12 months of the Scheme’s operation has been undertaken. In addition, the Programme for Government commits to maintaining the right of social housing tenants to purchase their own home with some changes to eligibility. The review and the commitments in the Programme for Government are being examined as part of the work on the broader social housing reform agenda. The position on the minimum income requirement is a matter for consideration.

The review of the Scheme is part of a significant body of work undertaken in the Department in relation to the broader social housing reform agenda. I expect to be in a position to publish the review and finalise changes to the Scheme once the work on these reform measures is complete.

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