Catherine Murphy (Kildare North, Independent)
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Question 551: To ask the Minister for the Environment, Community and Local Government his plans to modify the interest rate for the rental portion of the shared ownership loan which appears to be placing an excessive burden on low income households; and if he will make a statement on the matter. [23206/11]

Willie Penrose (Longford-Westmeath, Labour)
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The rent charged on the local authority's equity in a shared ownership transaction 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.

In addition, an annual subsidy towards rent payments under the Shared Ownership Scheme is available, through the Rental Subsidy Scheme, to households with 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.