Bernard Durkan (Kildare North, Fine Gael)
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To ask the Minister for Environment, Community and Local Government if he will identify and provide for a reorganisation of the shared ownership loan system which is currently penalising holders of such mortgages in a most unfair fashion whereby the rent being charged in respect of the local authority equity in the dwelling is vastly in excess in some cases of the mortgage on the remaining equity; if he will identify the ways and means of addressing this issue as a matter of urgency; and if he will make a statement on the matter. [39317/12]

Jan O'Sullivan (Limerick City, Labour)
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Under the Shared Ownership scheme 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.

The review of Part V of the Planning and Development Acts announced in the context of the standing down of affordable housing schemes as part of the Government’s housing policy statement will include an examination of the operational aspects of the shared ownership scheme. That review is currently on-going and I expect the report to be delivered to me later this year. Any future changes to legislation governing affordable housing schemes, including the shared ownership scheme, will be informed by that review.