Richard Bruton (Dublin North Central, Fine Gael)
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Question 180: To ask the Minister for the Environment, Heritage and Local Government the rate of interest charged on the mortgage element under shared ownership; the rate charged for mortgage protection; the combined charge costs per month per €1,000 of mortgage; and if changes are due. [31812/07]

Richard Bruton (Dublin North Central, Fine Gael)
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Question 181: To ask the Minister for the Environment, Heritage and Local Government the rental charge on the rented element under shared ownership; the costs of same per month per €1,000 of rented property in the first year and each subsequent year; and if changes in this are planned. [31813/07]

Richard Bruton (Dublin North Central, Fine Gael)
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Question 182: To ask the Minister for the Environment, Heritage and Local Government the reason the rent chargeable on the rented portion of a home under shared ownership rises by 4.5% per year; and if such a charge continues to be justifiable at a time when house prices are falling. [31816/07]

Batt O'Keeffe (Cork North West, Fianna Fail)
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I propose to take Questions Nos. 180 to 182, inclusive, together.

The variable interest rate charged by a local authority on the mortgage element of a shared ownership transaction is determined by the Housing Finance Agency by reference to prevailing rates in the financial market. The current variable rate is 5%. In addition, a mortgage protection charge of 0.598% is applied to all local authority loans. On this basis, the combined cost per €1,000 of mortgage per month, over a 25 year term, would be €6.20. These costs exclude any tax relief due.

Rent is calculated at 4.3% of the value of the share in the ownership held by the local authority. This amount is increased annually by 4.5%. The rent per €1,000 is, therefore, €3.58, increasing annually by 4.5%. This amount excludes any rent subsidy due.

The rent charged is to cover the funding costs to the Housing Finance Agency which are based on borrowings at the prevailing interest rates. Any difference between the rent and prevailing interest rate is reflected in the capital outstanding on the property i.e. if the rent charged in any period is greater than the prevailing mortgage interest due on the local authority's share, the purchase price of the outstanding equity will be reduced accordingly.

The Shared Ownership Scheme is being kept under review in the context of my Department''s consideration of a report on the broader range of affordable housing delivery mechanisms, which was completed recently by the Affordable Homes Partnership.