Seanad debates

Tuesday, 10 December 2019

Nithe i dtosach suíonna - Commencement Matters

Tenant Purchase Scheme

1:30 pm

Photo of Robbie GallagherRobbie Gallagher (Fianna Fail)
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I welcome the Minister of State to the House. Most people and most families would like to own their own home.That is a credible ambition for most people. Unfortunately, under the tenant purchase scheme, people who live in what are called Part V houses, that is, houses provided under Part V of the legislation, are excluded from that option. This clearly discriminates against those who live in such properties. Amending the tenant purchase scheme would facilitate a positive transfer of wealth to a section of society which does not always have the opportunity to purchase a home. There are more than 4,000 Part V houses in the country, of which approximately 160 are in counties Monaghan and Cavan. I have been contacted by many young families who are heartbroken because those living in Part V houses are prohibited from buying out their home under the tenant purchase scheme. Unfortunately, the dream of owning their home is out of their reach until this scheme is amended.

Not everyone living in a Part V house will wish to purchase their home but the legislation needs to be amended for those who wish to do so. I know of many families who, when allocated a Part V house a number of years ago, did not realise the legislation prevented them from buying their property. In many housing estates around the country people in Part V houses living alongside other local authority tenants see neighbouring tenants who wish to buy their properties do so, while they are not allowed that luxury.

The sale of Part V houses would generate much needed income for the State which could be ring-fenced for housing in each local authority area. It would also save local authorities money in the long run as there would be no need for ongoing maintenance. I earnestly ask that the Government change the regulations to allow people in Part V houses to purchase them if they wish to do so. Those who dream of owning their own home, many of whom have spent money on the houses they rent and are keeping them very well, would like the option to purchase.

I raised this issue 12 months ago and the Minister of the day indicated a report on the tenant purchase scheme was imminent and would be published shortly. That was November last year and we are still waiting for that report to be published. I would like the Minister of State, if possible, to give us an update on the report and provide assurance to those people living in Part V houses that the dream of owning their own home, if they wish to purchase their home, will be within reach.

I also ask the Minister of State to comment on the position regarding people living in houses provided by social housing bodies as I understand they are also prohibited from purchasing their properties. I ask her to comment on the thresholds for those who qualify for social housing. There are some discussions under way in that respect. I understand the thresholds will be raised, as they must be, to allow more people to avail of social housing or local authority housing, where possible. I look forward to the Minister of State’s response.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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I thank the Senator for tabling this Commencement matter. The Minister for Housing, Planning and Local Government, Deputy Eoghan Murphy, is unavailable today and has asked me to take this matter on his behalf.

The Housing (Sale of the Local Authority Houses) Regulations 2015 provide the basis for the tenant incremental purchase scheme for existing local authority houses. The scheme, as the Senator will know, is open to eligible tenants, including joint tenants, of local authority houses that are available for sale under the scheme. To be eligible, tenants must meet certain criteria, including having a minimum reckonable income of €15,000 per annum and having been in receipt of social housing support for at least one year.

The 2015 regulations governing this scheme provide for a number of specified classes of houses to be excluded from sale.These include: houses provided to local authorities under Part V of the Planning and Development Act, as amended; houses specifically designed for older persons; group Traveller housing; and houses provided to facilitate people with disabilities transferring from institutional care to community-based living. The provisions in Part V of the Act, as amended, are designed to enable the development of mixed-tenure, sustainable communities. Under the terms of the tenant incremental purchase scheme 2016, Part V homes, regardless of when they were tenanted, are excluded in order to ensure that homes delivered under this mechanism will remain available for people in need of social housing support and that the original policy goals of the legislation are not eroded over time.

The continued development of mixed-tenure communities remains very important in promoting social integration. Local authorities may, within the provisions of the regulations, exclude certain houses which in their opinion should not be sold for reasons such as proper stock or estate management. It is a matter for each individual local authority to administer the scheme in its operational area with the overarching provisions of the governing legislation for the scheme and in a manner appropriate to its housing requirements.

Photo of Gerry HorkanGerry Horkan (Fianna Fail)
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I welcome a former Deputy and county councillor of many years service, Mr. James Breen, and his guests to the Visitors Gallery. Mr. Breen is very welcome. It is nice to see a former Member returning to the Houses.

Photo of Robbie GallagherRobbie Gallagher (Fianna Fail)
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I thank the Minister of State for her reply. I appreciate that this matter does not relate to her brief. The reply is disappointing. If I were to rewind the clock 12 months, I would have got a similar reply. It is disappointing for those who are waiting for the review and the recommendations of the Government to be published. For those who aspire to own their own homes, and who are currently in Part V housing, the dream is still beyond them.

I derive some hope from the final paragraph of the reply, which states that the intent is to bring the measures of reform to the Government very shortly or in the near future. Perhaps she will clarify this. Could she give me the Government's definition of what constitutes "the near future"? What period are we talking about, bearing in mind that the lifetime of this Government is, according to the Taoiseach, due to come to an end by May? Perhaps the Minister of State can give me a timeframe for when the Government intends to bring the new measures forward.

Photo of Mary Mitchell O'ConnorMary Mitchell O'Connor (Dún Laoghaire, Fine Gael)
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The Senator asked what is meant by the reference to the near future. As a member of Fianna Fáil, he knows that it could be any time from now until an election is called. In all seriousness, I hope the measures will be published very soon.

Photo of Robbie GallagherRobbie Gallagher (Fianna Fail)
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I look forward to that.