Thomas Pringle (Donegal South West, Independent)
Link to this: Individually | In context | Oireachtas source

To ask the Minister for Social Protection if she has considered changing the way property is assessed in the means test for social welfare claimants; if she will change to a system of assessing the rental income rather than the capital value as a measure of the income attributed to the property; and if she will make a statement on the matter. [50936/12]

Joan Burton (Dublin West, Labour)
Link to this: Individually | In context | Oireachtas source

Social welfare legislation provides that the yearly value of “property owned but not personally used or enjoyed” is assessable for means testing purposes. Property for this purpose includes:

i. Money invested in a bank, building society or other financial institution;

ii. The current market value of stocks and shares of every description, and

iii. Houses and premises owned by a claimant which may or may not be put to commercial use (including property which is rented out).

However, it does not include property such as the home or, for example, a premises used by the claimant in carrying out a business.

For assessment purposes, the current market value of the property is established as well as the amount of any outstanding mortgages on that property. The balance (market value less outstanding mortgage) is assessed by reference to a formula. Where the current market value is less than the outstanding mortgage, no assessment is made.

In establishing the current market value of a property, the Department may make enquiry of the State Valuation Office. Alternatively, the market value may be established through receipt of a reasonable current valuation from a registered auctioneer, with reference to the purchase price and date of purchase of the property or, alternatively, the inspector may agree a valuation with a customer having regard to the type and location of the individual property and prevailing market values in that area.

The current market value of a property is the best estimate of what would be achievable if the property was offered for sale. Such an estimate will have regard to reductions in prices over recent years. Given that background, I have no plans to change the assessment of property for the purposes of means tested social assistance schemes operated by the Department of Social Protection.