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

I thank the Deputy for making this suggestion. I need to give my reply in the context of the Government's 2011 housing policy statement, which is quite explicit in taking a tenure-neutral approach to housing. That is, we will work towards enabling households to access the type of housing that best suits their needs at a point in time. Part of the function of the National Asset Management Agency, as a major holder of residential property stock, is to make a contribution to the social and economic development of the State. In this regard, the delivery of a social dividend from its stock of residential properties is a key challenge that Government has set the agency. While progress in this regard has not been as fast as hoped for, it has identified 2,000 units that may match well with my Department's social housing leasing initiative that is being rolled out in conjunction with the approved housing body sector.

The residential mortgage initiative product launched by NAMA this year may have a role in facilitating people who want and can afford to buy to realise their home ownership aspirations. However, there is a fine line between facilitating and enticing. I have no issue with facilitating, but we need to be careful with enticing because we cannot afford to repeat the mistakes of the recent past.

While I have no function in respect of the commercial activities of the agency, a responsibility which rests with my colleague, the Minister for Finance, I believe a rent-to-buy scheme could have merit. I again thank the Deputy for raising the issue in the context of the provision of housing that meets individual needs at a point in time. Such a scheme could provide a housing solution to households, with the possibility, but not the legal obligation, of progressing to purchase at a point in the future.

The Deputy may be aware that in 2010 my Department launched a rent-to-buy scheme in the Dublin City Council area specifically to facilitate Dublin City Council to deploy unsold affordable housing units in its stock. Under this scheme, the applicant will rent the property for up to three years, with an option to purchase at any time during this term at an agreed affordable purchase price. A percentage of the rent paid can be used as a deposit towards the purchase of the property. At the end of this three-year period, the applicant has the choice of proceeding or not with the purchase. While the fact that this scheme provides an opportunity for eligible households to test drive home-ownership for a few years without the fear of getting caught out by fluctuations in the housing market is not its main aim, there are still some very real advantages in it for individual households.

Taking this into account, I will raise the topic under discussion with my colleague, the Minister for Finance, as another potential housing market intervention by NAMA. I compliment Deputy Lynch, who always thinks outside the box, on coming up with this practical proposal. As I stated, I will take it to the Minister for Finance, who is the relevant Minister dealing with NAMA in this regard.

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