Pat Deering (Carlow-Kilkenny, Fine Gael) | Oireachtas source

I thank the Ceann Comhairle for selecting this issue and the Minister of State with responsibility for housing for his attendance. It is an important issue.

Unfortunately, one of the legacy issues of the Celtic tiger economy is the many people in mortgage distress and mortgage arrears. Recent figures show that 38,000 are in mortgage arrears for two years or more, a very difficult situation for them. The priority of Government policy, with which everybody agrees, has been to keep people in their own homes in so far as possible. That is important.

I welcome the changes made in recent weeks to the mortgage-to-rent scheme which is one of the best methods of ensuring people can remain in their homes when they get into mortgage difficulties. The changes announced, including the flexibility provided for and the increase in the valuation, have been helpful in that regard. However, there are still anomalies in the system. I can offer the example of a case brought to my office recently, although there are a number of cases that must addressed in this context. The individual concerned, Jason, has a wife and two children. He borrowed in excess of €300,000 to buy a house that is now worth €150,000. It is an ordinary, three bedroom semi-detached house. He ticks almost all of the boxes in respect of eligibility for the mortgage-to-rent scheme. He owns the house and the valuation is under €180,000. The one box he does not tick is that he does not qualify for social housing. Previously, he had a job that guaranteed an income of €60,000 per year. Unfortunately, like many others, he lost his job, but, unlike some, he had the get up and go to find another job, although it only gives him an income of €35,000 per year. The cut-off point for eligibility for the mortgage-to-rent scheme and social housing qualification in County Carlow is €27,500 for a man, his wife and two children. Therefore, he does not qualify for the mortgage-to-rent scheme. It is the only box he does not tick. There must be flexibility on an individual basis in this regard. He believes that if he were to give up his job, stay at home and become a burden on the State, he would qualify for the scheme and thereby let it look after him. He was prepared to try to get his life going again, but he is not in a position to pay his mortgage, although he is in a position to stay in his home, if possible. If he loses his house in the morning which is an unfortunate possibility for him, he will have to rent private accommodation. It is impossible to rent a property in the Carlow region for less than €700 per month and he would not be in a position to pay that amount.

I urge the Minister to examine the mortgage-to-rent scheme again. There are anomalies in the system that must be addressed. This is one that could be addressed on an individual basis. I am not asking the Minister to open the doors completely for social housing qualification, but where somebody is in mortgage difficulty and qualifies in every other regard for the mortgage-to-rent scheme other than in this respect, it should be reviewed.

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