John McGuinness (Carlow-Kilkenny, Fianna Fail)
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Question 282: To ask the Minister for the Environment, Heritage and Local Government if the clawback arrangement will be reviewed as applied in the social and affordable housing scheme operated by local authorities with a view to reducing the percentage being clawed back and reducing the period from 20 years to ten years; his views on the success or otherwise of the scheme; and if he will make a statement on the matter. [37089/05]

Noel Ahern (Dublin North West, Fianna Fail)
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Houses sold under the various affordable housing schemes at a discount from market value contain a clawback provision. This clawback provides that if a house purchased under the affordable housing schemes at a discount from market value is resold before the expiration of 20 years from the date of the purchase, the person selling the property shall pay to the local authority a percentage of the proceeds of the sale. This percentage is equal to the percentage discount allowed by the local authority on the original sale of the house where the house is resold within the first ten years. The amount payable is reduced by 10% in respect of each complete year after the tenth year during which the person who purchased the property has been in occupation as his or her normal place of residence.

The provision for a clawback is necessary to ensure that there is no short-term profiteering on the resale of a house provided by a local authority at a discount from market value. I am satisfied that the provision works well in protecting the public interest in these affordable houses and, accordingly, I have no plans to alter the present arrangements.

Since its introduction in March 1999, some 4,650 housing units have been provided under the 1999 affordable housing scheme and over 1,600 social and affordable units have been acquired under Part V agreements with developers. In addition, the shared ownership scheme has attracted in excess of 17,000 purchasers to date. I am confident that these schemes together with housing to be provided under the partnership agreement Sustaining Progress are all contributing to the Government's strategy for social and affordable housing and will deliver substantial output over the coming years. It is estimated that over 12,000 units in total will be delivered from all of the affordable schemes between 2005 and 2007.