Paudie Coffey (Waterford, Fine Gael) | Oireachtas source

I thank the Deputy for raising this important issue. There are two mortgage-to-rent schemes in operation through my Department. There is a scheme 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. 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 household to remain in their home as a social housing tenant. It is the latter scheme 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 AHB mortgage-to-rent scheme, a household 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 anddeemed eligible for social housing in accordance with section 20 of the Housing (Miscellaneous Provisions) Act, 2009. In that context, income thresholds that are applied to be eligible for the scheme are the income thresholds for social housing generally. It is important to remember that the income thresholds for social housing which can be up to €35,000 per year for a household with a single adult are based on net household income after taxes and social insurance payments. In addition, there are further allowances for each child. These amounts are in line with the general housing needs assessment guidelines applicable to all social housing tenants to be deemed eligible for social housing and are considered reasonable in respect of the income bracket targeted by the scheme.

While we are making progress with it, it has been acknowledged that take-up of this scheme overall has been slow. In that context, the Government recently announced changes to the mortgage-to-rent scheme as part of a broader package of measures to deal with mortgage arrears. The changes being made will make the scheme more flexible and accessible and are designed to enable more properties to qualify for the scheme. The key measure proposed in this package is that the valuation threshold for properties will be increased in line with the acquisition thresholds for social housing generally. These new measures are due to be in place by end of this month.

See this speech in context