Written answers

Thursday, 4 October 2012

Department of Environment, Community and Local Government

House Purchase Schemes

Photo of Ciarán LynchCiarán Lynch (Cork South Central, Labour)
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To ask the Minister for Environment, Community and Local Government the progress that has been made regarding the incremental purchase scheme; the number of purchases to date that have taken place under the scheme; the number of local authorities that have the scheme in place; if he has given consideration to extending the traditional tenant purchase model which is due to cease this year; and if he will make a statement on the matter. [42398/12]

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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Provisions are in place under Part 3 of the Housing (Miscellaneous Provisions) Act, 2009 enabling for Incremental Purchase in respect of newly-built houses reserved by housing authorities for the purpose. Regulations to implement the Incremental Purchase Scheme for new houses were made in June 2010. This incremental purchase scheme is available to all housing authorities.

Information regarding the number of homes made available and applications received under the scheme in housing authorities is not currently available in my Department. However, it is intended that the Department will collate the data and make the information available in due course in the context of the suite of statistical returns provided by housing authorities. Arrangements for the winding down of the 1995 Tenant Purchase Scheme were communicated to local authorities in June 2012. Under these arrangements local authorities may accept applications to purchase under this scheme until 31 December 2012. There are no plans to extend this scheme.

However, it is intended to introduce legislation to underpin a new scheme for the sale of existing local authority houses to tenants on incremental purchase principles. The new scheme will be a discount scheme based on household income that enables the State to share in the profits from resale during the 20 to 30 year period for which the house is subject to an incremental purchase charge. The proposed scheme will mean that tenants will have the option of buying the house they currently occupy under the incremental purchase model. It is envisaged that this scheme will be in place in 2013, subject to the necessary legislation being enacted.

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