Written answers

Thursday, 4 May 2006

Department of Environment, Heritage and Local Government

Local Authority Housing

5:00 pm

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 237: To ask the Minister for the Environment, Heritage and Local Government the number of families currently on local authority housing lists; and if he will make a statement on the matter. [16802/06]

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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The most recent assessment of need for social housing, which was undertaken by local authorities in March 2005, indicated that there were 43,684 households on local authority housing waiting lists compared with 48,413 households in March 2002, a decrease of almost 10%. More comprehensive data on the assessment at an individual local authority level will be published shortly in the Annual Bulletin of Housing Statistics and on my Department's website at www.environ.ie.

In December 2005, the Government launched a new Housing Policy Framework: Building Sustainable Communities which outlines key principles underpinning housing policy and investment over the coming years. Substantial increased investment in social and affordable housing is outlined in the framework. This will allow for some 23,000 new social homes to be commenced between 2006 and 2008; and some 15,000 affordable homes to be delivered. In total, some 50,000 households will benefit over the coming three years from an Exchequer capital investment package of close to €4 billion. Allied to this, a package of reforms is proposed to improve equity, efficiency and effectiveness. The focus is on improving community participation, improving services to ensure personal choice, autonomy and responsibility.

Local authorities have been urged to accelerate progress on the implementation of their housing programmes in order to commence construction and secure completion on as many social housing schemes as possible in 2006.

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 238: To ask the Minister for the Environment, Heritage and Local Government if the various local authorities will be instructed to increase shared ownership loans to a more realistic level; and if he will make a statement on the matter. [16803/06]

Photo of Bernard DurkanBernard Durkan (Kildare North, Fine Gael)
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Question 239: To ask the Minister for the Environment, Heritage and Local Government the way in which he expects first time house buyers to purchase a home on foot of the maximum shared ownership loan which stands at €185,000; and if he will make a statement on the matter. [16804/06]

Photo of Noel AhernNoel Ahern (Dublin North West, Fianna Fail)
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I propose to take Questions Nos. 238 and 239 together.

The loan limit for the Shared Ownership Scheme was reviewed and increased with effect from 1 January 2006. The maximum loan that may be advanced by a local authority in respect of the share of the dwelling being purchased (minimum 40%) is €185,000. However, the cost of the dwelling may exceed this amount subject to the borrower's income being sufficient to meet the financial commitments involved under the scheme. Local authorities may also apply a house purchase price upper limit 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.

Local authorities assess each application for shared ownership on its merits, having regard, in particular, to the applicant's ability to make the necessary mortgage and rent payments. They ensure, in determining the level of finance approved or house price, that monthly outgoings do not exceed 35% of net household income. While there are no plans at present to alter the terms of the scheme, I am committed to keeping it under review.

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