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

The Government’s 2011 housing policy statement announced the standing down of all affordable housing schemes, including the shared ownership scheme, in the context of a full review of Part V of the Planning and Development Act 2000. That review is now almost concluded and I have also asked the Housing and Sustainable Communities Agency to provide me with a stand-alone analysis of the shared ownership scheme, including identification of the main difficulties and recommendations for mitigating measures. Any future changes to legislation governing affordable housing schemes, including the shared ownership scheme, will be made in the context of both pieces of work and I expect to make announcements in this regard in the near future.

It is relevant to note that the purchasers were in the position of having their share of the property rise in value when the market was rising. It should also be borne in mind that local authorities have drawn down loans on the rental equity portion with a view to facilitating the ownership of the property incrementally for the occupier. Every effort is made by housing authorities to assist borrowers who encounter difficulties in meeting their commitments. For example, article 10 of the Housing Regulations 1980 (Amendment) Regulations 1996 provides that, in cases of hardship, the loan repayment period may be extended and arrears capitalised so as to make repayments more manageable for the borrower.

Mortgage interest supplement under the supplementary welfare scheme, administered by the Department of Social Protection, is payable, subject to the qualifying conditions of that scheme, in respect of mortgages under shared ownership transactions, in the same way as in the case of mortgages generally. An annual subsidy towards rent payments under the shared ownership scheme is available, through the rental subsidy scheme, to households with a gross household income of up to €28,000 per annum in the preceding tax year. The level of subsidy ranges between €2,550 for incomes up to €13,000 and €1,050 for incomes up to €28,000.

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