Jack Wall (Kildare South, Labour)
Link to this: Individually | In context

Question 104: To ask the Minister for the Environment, Community and Local Government the reason he is continuously adding 4.5% to the cost of shared ownership loans given that neither his Department nor the local authority have an input into the maintenance or otherwise of the house that was purchased and the loan was agreed in the first instance; the further reason for the increase each year that is creating problems for home owners; and if he will make a statement on the matter. [24321/11]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 105: To ask the Minister for the Environment, Community and Local Government the extent to which he has sought or received information from the various local authorities relating to shared ownership mortgage holders who are in distress, with particular reference to clarification as to how the repayments on some such mortgages are higher than ordinary mortgages notwithstanding the fact that only partial equity is involved; if he has received communication from the local authorities with a view to some resolution; and if he will make a statement on the matter. [24356/11]

Willie Penrose (Longford-Westmeath, Labour)
Link to this: Individually | In context

I propose to take Questions Nos. 104 and 105 together.

Under the shared ownership scheme houses are acquired by a local authority and leased to shared owners, who purchases at least 40% of the value of the house and rents the remaining equity from the local authority. The local authority finances the transaction by borrowing from the Housing Finance Agency. The shared owner must purchase full ownership within 30 years. For transactions commenced on or after 1 January 2003, the annual rent is calculated at 4.3% of the value of the local authority equity and the rent is increased by a fixed 4.5% on 1 July each year. The rent is used to repay the cost of the local authority equity to the Housing Finance Agency and, depending on the level of mortgage interest rates obtaining, may also increase or decrease the capital outstanding on the local authority share at the end of each year. These arrangements represent a significant improvement on the previous terms of the scheme for the shared owner.

The rental formula applied under the scheme is not comparable to rents in the private rented sector, which are determined by the operation of the market. Therefore, movements in private sector rent levels would have no relevant bearing on the calculation of the rental element under shared ownership. Local authority mortgage holders – including those who purchased under shared ownership – also benefit from extremely keenly priced interest rates which generally run at around 0.5% lower than the best rates available in the market. 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 Government's housing policy statement, published on 16 June, announced the standing down of all affordable housing schemes, including the shared ownership scheme, in the context of a full review of Part V of the Planning and Development Act 2000.

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 106: To ask the Minister for the Environment, Community and Local Government the steps that will be taken to utilise excess housing stock to meet the requirements of those on local authority housing waiting lists; and if he will make a statement on the matter. [24357/11]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 107: To ask the Minister for the Environment, Community and Local Government if he has any information as to whether recent distressed property sales by the National Asset Management Agency have shown that any substantial proportion of such sales have gone to address the housing needs of first-time buyers as opposed to investors; and if he will make a statement on the matter. [24358/11]

Bernard Durkan (Kildare North, Fine Gael)
Link to this: Individually | In context

Question 108: To ask the Minister for the Environment, Community and Local Government if he has studied the possibility of facilitating first-time house buyers or those on local authority housing waiting lists in the context of any property disposals by the National Asset Management Agency; and if he will make a statement on the matter. [24359/11]

Willie Penrose (Longford-Westmeath, Labour)
Link to this: Individually | In context

I propose to take Questions Nos. 106 to 108, inclusive, together.

On 16 June 2011 I launched the Government's new housing policy statement which will serve as a framework for a sequence of legislative and policy initiatives in the short to medium term. Based on a number of fundamental principles and goals that will form the foundation of a substantial reform programme, the new framework for housing policy responds to current and emerging conditions in the housing sector, taking account of the dramatic cycle of rapid growth and sudden collapse in the residential property market.

The centrepiece of the approach is to chart a way forward for housing policy in Ireland by placing greater emphasis on:

· choice;

· equity across housing tenures; and

· delivering quality outcomes for the resources invested.

In terms of home ownership, the policy statement recognises and welcomes the fact that home ownership will continue to be the aspiration of the majority of households. However, the Government is also conscious that there are other households who either do not want or may not ever be in a position to own their home.

We need to provide choice for such households. This choice will be on the basis of household circumstances and need and will not entice people through fiscal or other stimuli to favour one tenure over another. I have no plans, therefore, to introduce a scheme that would incentivise house purchase. However, I am committed to exploring all options for bringing unsold suitable residential stock into productive use for social housing purposes, including stock held by the National Asset Management Agency, through the social housing leasing initiative.

My Department does not have information in relation to any recent sales of residential units by NAMA.