Kevin Humphreys (Dublin South East, Labour) | Oireachtas source

I thank the Deputy for raising this matter. The work he has done on the Private Members' Bill concerning bankruptcy has much merit. I look forward to the Government's proposals being published shortly after Easter. I always appreciate Deputy Penrose's insight on housing because he obviously has quite an amount of experience in this area.

There are currently two mortgage-to-rent schemes in operation through the Department of the Environment, Community and Local Government. A scheme exists whereby a local authority can acquire ownership of properties with unsustainable local authority mortgages, thus enabling the household to remain in their home as a social housing tenant - that is, the local authority mortgage-to-rent scheme.

The other scheme provides for an approved housing body, AHB, to acquire ownership of a property with an unsustainable private mortgage, which also enables the householder to remain in their home as a social housing tenant. It is the latter scheme, AHB mortgage-to-rent, to which the Deputy is referring. This scheme is designed to assist families with income difficulties whose mortgages are unsustainable, and where there is little or no prospect of a significant change in circumstances in the foreseeable future.

To be eligible for the approved housing body mortgage-to-rent scheme, a householder must have had their mortgage position deemed unsustainable under the mortgage arrears resolution process, agree to the voluntary surrender of their home, be in negative equity, and be deemed eligible for social housing in accordance with section 20 of the Housing (Miscellaneous Provisions) Act 2009. The Deputy has already outlined those conditions.

In addition, in order for a property to be considered under the AHB mortgage-to-rent scheme it must be purchased by an approved housing body for less than €220,000 per property in the greater Dublin area and €180,000 per property in the rest of the country. These limits were determined by a working group taking account of available market data, including the current social housing acquisition limits. The Minister, Deputy Kelly, considers that they continue to be reasonable in respect of the income bracket that is targeted by the scheme.

While progress is now being made on this scheme, it has been acknowledged that take-up of the scheme overall has been slow. In recognition of this, and in an effort to increase the numbers delivered under the scheme, a new protocol between all parties in the process has already been agreed and came into operation in 2014.

The protocol includes such measures as the provision of a single independent valuation for the purpose of agreeing the purchase price. The valuation and condition surveys are now carried out earlier in the process to give more certainty to all parties in the process including the borrower. The new protocol is endeavouring to ensure that as much certainty is being provided as early as possible in the process to minimise uncertainty and late withdrawals from the scheme.

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