Michael Kitt (Fianna Fail)

An interesting issue that surfaced in Galway – the second largest county in Ireland – was that applicants did not have a contract with their builders but local authorities did have them. That was important and the Minister actively worked on that.

The Minister might clarify certain conditions applying to the provision of affordable housing. Purchasers were told initially that if they were to sell their houses after a period of ten years, a redemption fee or clawback would apply and that interest rates would be 3.85% variable or 4.4% fixed for five years. Those conditions appeared to be favourable, but it seems that the agreement was later changed to the effect that the clawback would apply after 20 years and interest rates were increased to 6% variable and 6.5% fixed for five years. I understand from my local housing officer that there is a more generous mortgage subsidy for people on the second type of scheme, but it is interesting that some changes were made in the conditions. If the people concerned prefer the first set of conditions, they should be allowed to avail of them even though the mortgage subsidy is better for people under the second scheme.