Written answers

Wednesday, 20 November 2013

Department of Environment, Community and Local Government

Mortgage to Rent Scheme Eligibility

Photo of Ann PhelanAnn Phelan (Carlow-Kilkenny, Labour)
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139. To ask the Minister for Environment, Community and Local Government if his Department plans to implement a mortgage-to-rent scheme for families who are experiencing severe financial difficulty; the merits of implementing such a scheme in respect of its ability to retain the family home as another measure of dealing with the level of indebtedness that families currently have; and if he will make a statement on the matter. [49757/13]

Photo of Jan O'SullivanJan O'Sullivan (Limerick City, Labour)
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On foot of the recommendations of the Keane Report on mortgage arrears the Government launched a mortgage to rent scheme on a pilot basis in February 2012. This scheme was extended nationally in June 2012, targeting those low income families whose mortgage situation is unsustainable and where there is little or no prospect of a significant change in circumstances in the foreseeable future. The scheme ensures that the family remains in their home, while ownership is transferred to an approved housing body who in turn rent it to the original owners. Eligibility requirements are in line with other forms of social housing support.

To date, over 1,570 cases have been submitted by lenders. Of these, 630 borrowers have been engaged with, or are in the process of being engaged with, by the lender. 20 sales have now been completed with a further 50 sales agreed. A pilot mortgage to rent scheme for the most acute cases of local authority mortgage arrea rs was launched earlier in 2013 , in Westmeath County and Dublin City Councils, and has now been completed. It is intended to implement this scheme throughout the local authority sector in the near future.

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