Brian Lenihan Jnr (Dublin West, Fianna Fail)

In view of the changed conditions in the housing market we have decided to reform certain schemes.

First, we will extend the existing local authority mortgage scheme by increasing the maximum loan available to borrowers. This extension will assist purchasers who wish to become homeowners but who are, at this time, unable to obtain loan finance. This will be a targeted and temporary initiative. Funding will be provided by the Housing Finance Agency and it will be operated by a small number of local authorities acting on a regional basis.

Second, we have decided to introduce a single Government equity initiative to replace a range of existing schemes which have developed in recent years. Under this initiative the Government will assist those seeking affordable housing by taking an equity share in such houses. This proposal will simplify the delivery of affordable homes.

The full details of these changes will be announced by my ministerial colleagues with responsibility for housing.

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