Dáil Éireann Debate, Thursday - 11 November 2021
58. Deputy Ciarán Cannon asked the Minister for Housing, Local Government and Heritage the progress which has been made in finalising the parameters for eligibility for the various affordable purchase and rent schemes; and if he will make a statement on the matter. [55165/21]
Amharc ar fhreagra94. Deputy Richard Bruton asked the Minister for Housing, Local Government and Heritage the progress which has been made in finalising the parameters for eligibility for the various affordable purchase and rent schemes; and if he will make a statement on the matter. [55050/21]
Amharc ar fhreagraI propose to take Questions Nos. 58 and 94 together.
The Programme for Government, Our Shared Future, sets out the objective that everybody should have access to sustainable, good quality housing to purchase or to rent at an affordable price, built to a high standard and located close to essential services, offering a high quality of life.
Housing for All confirms the introduction of two new affordable purchase schemes. The first will see the delivery of affordable homes by local authorities. The second will see the introduction of a 'First Home' affordable purchase shared equity scheme for homes in private developments. Both of these schemes are primarily focused on supporting first-time buyers purchasing newly-built homes. In terms of eligibility, they will be targeted at households constrained by the maximum mortgage and deposit available to them. The schemes will bridge the gap between the market value and what the household can afford via the provision of equity support. The equity support can subsequently be redeemed at any time at the homeowner’s discretion, or remain outstanding until the home is sold or passed on.
The detailed design of the First Home is currently progressing for the scheme’s introduction in 2022. Eligibility will be informed by the Central Bank’s macro-prudential rules, along with designated price ceilings established by area for the scheme. Price ceilings for eligible homes and the maximum level of support available will be confirmed in advance of the scheme’s operation.
The first Cost Rental homes were delivered by the Approved Housing Body Clúid at Taylor Hill, Balbriggan, in August 2021, utilising funding from the Cost Rental Equity Loan scheme. The eligibility criteria for prospective tenants was agreed with my Department on an administrative basis, given the need to occupy these homes as soon as possible. For Taylor Hill, tenants were required to prove that their net household income was below €53,000 per annum, that they were not in receipt of any social housing supports, that their household size matches the size of the property advertised, that they could afford to pay the cost rent for the home and that their household had only entered one application for a specific cost rental property.
With the relevant elements of the Act relating to the local authority Affordable Purchase Scheme (Part 2) and Cost Rental (Part 3) commenced, it is my intention to make further Regulations governing the eligibility and price ceilings that will be applicable to these schemes in the near future.
