Dáil Éireann Debate, Tuesday - 25 January 2022
319. Deputy Bernard J. Durkan asked the Minister for Housing, Local Government and Heritage when a review will be undertaken of the thresholds for qualification for local authority housing or Rebuilding Ireland housing loans with particular reference to the urgent need to remove the most regularly identified obstacles in the path of those seeking rehousing; and if he will make a statement on the matter. [3546/22]
Amharc ar fhreagraHousing for All – A New Housing Plan for Ireland was published in September 2021 and, as part of a broad suite of social housing reforms, committed to reviewing income eligibility for social housing. The review, which examined inter alia the efficiency of the current banding model and income limits applicable to local authorities, was completed in Q4, 2021. I expect to make a decision on proposed changes and recommendations shortly.
The introduction of the Local Authority Home Loan was announced as part of Housing For All. This is the successor to the Rebuilding Ireland Home Loan Scheme. It has been available nationwide from local authorities since 4 January 2022 for people on modest or low incomes who cannot get sufficient funding from commercial banks to purchase or build a home. The loan can be used both for new and second-hand properties, or to self-build. It is available for first-time buyers and fresh start applicants. The Local Authority Home Loan can also be used for the purchase of homes through State schemes such as the Tenant Purchase Scheme and Affordable Housing Schemes, with the exception of the First Home Scheme.
The Local Authority Home Loan assists borrowers in securing an affordable, long-term fixed rate mortgage to purchase a home of their own. The Scheme supports homeownership amongst lower to moderate income households by reducing the cost of mortgage finance and increasing the level of financing available, particularly for single applicants in urban areas. For clarity, the Local Authority Home Loan supports private home ownership and is separate from the qualification for social housing.
A 'Fresh Start' principle also applies to the Local Authority Home Loans scheme. This means that people who are divorced, legally separated/separated or the relationship has ended and have no interest in, or any financial obligation for any borrowings in respect of the family home are eligible to apply under this scheme. People who have undergone personal insolvency/bankruptcy proceedings will also be eligible to apply for the Local Authority Home Loans Scheme.
Under the Local Authority Home Loan scheme the income ceiling for a single applicant in counties where the scheme's house price limit is €320,000 (Cork, Dublin, Galway, Kildare, Louth, Meath and Wicklow) has been increased from €50,000 to €65,000. In the rest of the country, where the scheme’s house price limit is €250,000, the income ceiling for a single applicant will remain at €50,000. The income ceiling for joint applicants remains at €75,000.
Further details can be found on the following websites: //localauthorityhomeloan.ie/ and www.gov.ie/en/service/00500-local-authority-home-loan-scheme/.
