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

I thank the Deputy for raising the issue. The mortgage-to-rent scheme is a part of the Government's response. I reject his suggestion that the Government is not responding. The Personal Insolvency Bill is proceeding through the Houses of the Oireachtas. The mortgage resolution process in the lending institutions has been set up, as has the advisory service.

My Department is working on the mortgage-to-rent scheme. The Government introduced the scheme on a pilot basis in the spring of this year, with the scheme extended nationwide in June. It targets those low-income families whose mortgage situations are unsustainable and where there is little or no prospect of a significant change in their financial circumstances in the foreseeable future. The aim of the mortgage-to-rent scheme is to ensure that families in such circumstances can remain in the family home, while ownership of the property transfers to an approved housing body which in turn rents it to the original owner. The administration of this scheme requires a collaborative approach between the borrower, lenders, approved housing bodies, the Housing Agency and the local authority sector, with the Housing Agency overseeing the co-ordination of applications. The establishment of processes within these various bodies was effected promptly by all parties and we are beginning to see the fruits of these labours now. It is important to point out that a number of bodies are involved in this and it involves transferring ownership of the home, which is complex.

I will answer some of the Deputy's questions. To date, 546 cases have been submitted to the Housing Agency, of which 188 were ruled out due to ineligibility for various factors. Some 254 cases are being progressed through the system, with a further 96 closed during this process as they were declined by one or more stakeholders. Further information or clarification is being sought in respect of 15 more, while I hope that seven applications will see successful completion imminently - we expect them to go through very quickly.

While I acknowledge that the number of transactions completed to date is low, all of the main lenders and the so-called sub-prime lenders are now fully engaged in the process. It is also important to note that the transition from being a home owner to a social housing tenant is a major one for families. Mortgage to rent, and other such interventions, cannot be rushed. My Department estimates that the overall timeframe per case, from start to finish, will be up to eight months and, as I said, the scheme was only introduced in June. This compares favourably with timeframes in other jurisdictions operating similar schemes.

Recent media reports that cast doubt on the efficacy of the mortgage-to-rent scheme are wide of the mark. It is a new scheme that will deliver a real solution for many hard-pressed low-income families. The process takes a number of months and, as a result, completion figures at this stage do not reflect the volume of work being undertaken or the good results for families whose applications will be finalised over the coming months. The process involving legal transactions takes several months, involving willing participants on both sides. We have now got some traction and, as I said, more than 200 applications are in process. We expect that some of those will cross the line very soon. However, a significant number will become operational next year. It is a real solution for families who are right at the end of their tether in not being able to pay their mortgages and it allows them to stay in the family home, keep children in the local school, etc. It is a good solution for many families.

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