Catherine Murphy (Kildare North, Independent)
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Question 436: To ask the Minister for the Environment, Heritage and Local Government if he intends to raise the limit of €165,000 for annuity loans given that this is significantly short of the cost of affordable houses in many parts of the country; and if he will make a statement on the matter. [14159/06]

Noel Ahern (Dublin North West, Fianna Fail)
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The maximum loan that can be advanced by local authorities for the acquisition or construction of a house was increased to €185,000 with effect from 1 January 2006. I have no proposals to increase this limit further but will continue to keep the matter under review.

Catherine Murphy (Kildare North, Independent)
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Question 437: To ask the Minister for the Environment, Heritage and Local Government the guidance his Department has given to local authorities on the limits they should set on the shared ownership loans; and if he will make a statement on the matter. [14160/06]

Noel Ahern (Dublin North West, Fianna Fail)
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The loan limit for the shared ownership scheme was reviewed and increased with effect from 1 January 2006. The maximum loan which may be advanced by a local authority in respect of the share of the dwelling being purchased, at a minimum of 40%, is €185,000. However, the cost of the dwelling may exceed this amount. Local authorities may also apply a limit that is lower than €185,000 to reflect local market conditions, to ensure priority of funding for lower income groups and to avoid any significant impact on house prices in their area. The setting of a maximum house value and the level of mortgage finance advanced is a matter for local authorities subject to the maximum loan limit and the borrower's ability to repay the loan.