Jan O'Sullivan (Limerick City, Labour) | Oireachtas source

Section 25 provides for the sale to a tenant by a housing authority of a house under Part 3, which includes the determination of the purchase price of that house. That sale is subject to certain terms and conditions, including conditions relating to occupation of the house as the normal place of residence of the purchaser or a household member, proposed changes to the status of the house in the future that require the prior consent of the housing authority and prohibitions relating to anti-social behaviour.

In conjunction with this, section 30 provides that I as the relevant Minister can make regulations to determine the method for calculating the purchase price of a house under the scheme. The methodology that I set in these regulations can differentiate between classes of houses and can take account of the age of the house and the estimated cost to the housing authority of providing a replacement house on the same site that would accommodate the same type household for which the house being purchased was designed.

In that context, there is ample legislative scope to determine the most appropriate method for housing authorities to calculate the purchase price for the purpose of this scheme. While I have not yet taken firm decisions as to the exact terms of the scheme that will be set down in regulations, I envisage that the purchase price of the house under this scheme will be based on its market value and its existing state of repair and conditions, but subject to a minimum price that takes account of the cost to the housing authority of replacing the house being sold.

It would be under the regulations that all of the various detail with regard to the sale price of the house would be determined. Previous tenant purchase schemes would facilitate the issue Senator Reilly raised. It would be under the regulations that all of those various elements of the price will be included.