Colm Burke (Cork North Central, Fine Gael) | Oireachtas source

This is not the remit of the Minister of State, Deputy Rabbitte. I thank Deputy Rabbitte for all the work she has done on the housing area. It is unfortunate, on the second last day before we finish up, that the Minister of State is asked to deal with this housing issue. It is an extremely important issue.

There are a large number of people getting caught in the middle-income groups. They cannot get bank loans and they cannot get a local authority house. We have raised a criterion in relation to qualifying for a local authority houses but what is frustrating - it is one of a number of problems I have had over the past number of months - is the timescale in considering loan applications by local authorities.

It is too much of a delay. People have lost purchases because there was a substantial delay in signing off loan applications by the local authorities.

We must also look at the income criteria. In the past two weeks I had a case sent to me in which the people involved met all of the qualifying criteria. They were saving very hard. They were paying rent of €1,600 per month. If they had been able to draw down the loan they applied for, they would have ended up making repayments of €1,200 a month but they were refused. I do not understand why this is happening. My understanding is that a large number of applications are being turned down by local authorities throughout the country because of the smallest of issues. We need to look at all of the local authorities and have a full review to see what is the timescale from when an application is received to a decision being made. What are the criteria local authorities are using to turn down loan applications?

In another case a person was turned down who had full capacity to make the repayments that would be required. He was turned down because three or four years ago he defaulted on the repayment of a personal loan for three months. That loan was fully cleared. It is accepted that he did default because he ran into difficulties when changing jobs and he did not pay. Now it is being taken as an excuse for not giving him a home loan.

These are all people who are working hard. They are saving. They are trying to put the package together for themselves so they will not be dependent on the State. Here we are. These are people who are not reliant on H.AP They are not reliant on local authority support for the rent they pay. We are turning down their loan applications. I want the Department to review what has happened over the past 12 months with regard to loan applications. How many loan applications were made? How many were turned down? Is there a need for a more detailed review of local authorities on an ongoing basis with regard to home loans?

I recall acting as solicitor in the purchase of three houses a week. One man with four young children wanted to buy a semi-detached house. The deposit on the house was £100, which he did not have. He was able to borrow it from the bank and buy a three-bedroom semi-detached house. We now have a situation whereby if the same person came in to me in the morning with €100,000 in the bank a local authority would not even consider him for a loan. We need to look this. How can we facilitate people who are making every effort to look after themselves and not be dependent on the State when we find the State is not giving them the support they require?

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