Jimmy Deenihan (Kerry North, Fine Gael)
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Question 272: To ask the Minister for the Environment, Heritage and Local Government if he will review the rent increase in the shared ownership scheme in view of the current economic climate; and if he will make a statement on the matter. [43640/10]

Michael Finneran (Roscommon-South Leitrim, Fianna Fail)
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Under Shared Ownership the rent charged on the equity stake held by the local authority is related to their borrowing costs from the Housing Finance Agency for the purchase of that equity. Borrowings drawn down are at prevailing interest rates. It is important to note that any difference between the rent and prevailing interest rate is reflected in the capital outstanding on the property. In other words, if the rent charged in any period is greater than the prevailing interest due on the local authority's share, the purchaser stands to gain because the purchase price of the outstanding equity will be reduced accordingly. In addition further support is available through rent subsidy. This is available to households purchasing under the Shared Ownership Scheme who have a gross household income of up to €28,000 per annum in the preceding tax year. The level of subsidy ranges between €2,550 for incomes up to €13,000 and €1,050 for incomes up to €28,000.

The terms of the shared ownership scheme are kept under review by my Department.