Bernard Durkan (Kildare North, Fine Gael)
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Question 354: To ask the Minister for the Environment, Heritage and Local Government the way it is intended that applicants for shared ownership or annuity loans, set at a maximum of €185,000 are expected to be able to acquire a home in view of the average cost of a dwelling at present; and if he will make a statement on the matter. [37047/06]

Bernard Durkan (Kildare North, Fine Gael)
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Question 355: To ask the Minister for the Environment, Heritage and Local Government the number of applicants for shared ownership of annuity loan in the past 12 months; the number approved; the number drawn down; and if he will make a statement on the matter. [37048/06]

Noel Ahern (Dublin North West, Fianna Fail)
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I propose to take Questions Nos. 354 and 355 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. While the cost of a dwelling may substantially exceed this amount, the borrower's income must be sufficient to meet the financial commitments involved under the scheme. Accordingly, 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.

Returns provided to my Department by local authorities indicate that in the twelve months ending 30 June 2006, a total of €115.3 million was drawn down in respect of 708 borrowers under the Shared Ownership Scheme. Detailed information on the number of applicants and number approved for shared ownership loans in each local authority area is published in my Department's Housing Statistics Bulletins, copies of which are available in the Oireachtas Library and also on the Department's website at www.environ.ie.

While there are no plans at present to alter the terms of the scheme, I am committed to keeping it under review.