Joan Collins (Dublin South Central, People Before Profit Alliance) | Oireachtas source

I support this motion in general. I have a Bill in the lottery of Bills that would offer a real solution for ordinary home owners with distressed mortgages. I hope it will be before the House soon.

I wish to address an important related issue that has serious effects for many people but is receiving little or no attention or publicity, namely, the shared ownership scheme. It was introduced during the property boom to help people who could not get mortgages in the private market. It was operated by the local authorities. While it might have been useful in the period of significant property price inflation, it has turned into a negative equity nightmare. It is a noose around the necks of many young people and couples who cannot get out of that trap.

In 2011, a Dublin City Council discussion paper identified five major issues. The council has approximately 2,900 loans under the shared ownership scheme. One issue was negative equity, in which a loan's value was far in excess of market value and borrowers could not repay their mortgages. A second issue is that of people whose accommodation needs have changed, for example, after having one, two or three children. A third issue is that of purchasers approaching the end of their mortgages being unable to discharge negative equity, a fourth relates to people who want to surrender their homes because of anti-social behaviour and the fifth is that of purchasers who want to rent out their properties.

No legislative framework is in place to allow the council to deal with this problem. It cannot write down those mortgages. As legislation is necessary, the Government must act. In Dublin City Council, a high proportion of these loans are in arrears. I am working with a campaign grouped around these issues that is seeking to have the Government write these mortgages down.

I hope that the Minister of State is listening.

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