Written answers

Tuesday, 23 September 2014

Department of Environment, Community and Local Government

Mortgage to Rent Scheme Application Numbers

Photo of Patrick O'DonovanPatrick O'Donovan (Limerick, Fine Gael)
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521. To ask the Minister for Environment, Community and Local Government if he will provide details in tabular form, by county and by year, of the number of applications for the mortgage to rent scheme which have been received since the scheme was introduced; the number that have been successful; the number that have been assessed by housing associations; the names of those associations; and if he will make a statement on the matter. [35861/14]

Photo of Patrick O'DonovanPatrick O'Donovan (Limerick, Fine Gael)
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522. To ask the Minister for Environment, Community and Local Government the numbers of applications by year and by county for the mortgage to rent scheme that were refused because of the rural location of the property in question; and if he will make a statement on the matter. [35864/14]

Photo of Jonathan O'BrienJonathan O'Brien (Cork North Central, Sinn Fein)
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523. To ask the Minister for Environment, Community and Local Government if he will provide details in tabular form, by county and by year, of the number of applications for the mortgage to rent scheme which were unsuccessful because of the occupancy conditions attached to the scheme in respect of the size of dwelling and number of persons residing in the property; and if he will make a statement on the matter. [35868/14]

Photo of Alan KellyAlan Kelly (Tipperary North, Labour)
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I propose to take Questions Nos. 521 to 523, inclusive, together.

There are currently two mortgage-to-rent schemes in operation through my Department. A scheme exists whereby a local authority (LA) can acquire ownership of properties with unsustainable local authority mortgages thus enabling the household to remain in their home as a social housing tenant (LA- mortgage-to-rent). The other scheme provides for an Approved Housing Body (AHB) to acquire ownership of a property with an unsustainable private mortgage which also enables the household to remain in their home as a social housing tenant (AHB-mortgage-to-rent). Both schemes are designed to assist families with income difficulties whose mortgages are now unsustainable, and where there is little or no prospect of a significant change in circumstances in the foreseeable future.

On foot of the recommendations of the Keane Report on mortgage arrears the Government launched the AHB-mortgage-to-rent scheme on a pilot basis in February 2012 and extended it nationally in June 2012. The scheme is currently in operation and continues to accept applications from lending institutions.

To be eligible for the AHB-mortgage-to-rent scheme a household must have had their mortgage position deemed unsustainable under the Mortgage Arrears Resolution Process, agree to the voluntary surrender of their home, be in negative equity, and be deemed eligible for social housing in accordance with section 20 of the Housing (Miscellaneous Provisions) Act 2009. There is a cap on the value of the property which applies but the location of the property is not a criterion for inclusion or exclusion to the scheme. Notwithstanding this, approved housing bodies must treat each case on its merits and issues such as the operational presence of the AHB or the market rent available may impact on its decision.

A total of 2,496 cases have been submitted to date. 31 of these cases are currently being progressed under revised procedures introduced to improve the process. Of the other 2,465 cases submitted, 1,003 were ineligible or terminated during the process, of which 258 cases were not progressed because the household in question was deemed to be over or under accommodated. Agreement on the sale could not be agreed on a further 50 cases. Of the remaining cases submitted, 48 have been completed, 1,221 are currently with the lenders who are seeking the consent of borrowers to share information and for the carrying out of an independent valuation, and the remaining 143 are actively being progressed. The following table breaks down the 2,465 submissions made by local authority and by status.

Authority Unsuccessful Sale Not Agreed Borrower consent

required
Active Completed Grand Total
Carlow 19 1 21 4 2 47
Cavan 40 18 6 64
Clare 20 2 22 4 1 49
Cork City 10 2 24 2 3 41
Cork County 69 1 55 3 2 130
DCC 74 5 121 25 7 232
DLR 9 2 7 0 1 19
Donegal 27 16 0 43
Fingal 57 3 97 17 2 176
Galway City 2 9 0 11
Galway County 41 2 17 1 1 62
Kerry 19 2 18 3 42
Kildare 36 2 104 5 5 152
Kilkenny 24 2 26 4 2 58
Laois 28 2 33 3 66
Leitrim 4 8 0 1 13
Limerick 51 1 41 5 3 101
Longford 15 8 3 26
Louth 13 1 22 1 37
Louth 29 3 45 15 3 95
Mayo 18 21 0 39
Meath 81 7 116 5 4 213
Monaghan 15 16 0 31
Offaly 25 47 5 77
Roscommon 22 6 0 28
SDCC 58 4 96 9 4 171
Sligo 14 4 0 18
Tipperary 60 2 48 4 2 116
Waterford 25 2 43 8 3 81
Westmeath 27 1 27 5 1 61
Wexford 46 2 44 2 94
Wicklow 25 1 41 4 1 72
Overall 1,003 50 1,221 143 48 2,465


The following table provides a breakdown by Approved Housing Body.
Approved Housing Body Unsuccessful Sale Not Agreed Borrower consent Required Active Completed Grand Total
Carbery HA 7 13 1 21
Clúid 153 38 296 78 38 603
North and East Housing Association 2 2 4
Novas 12 33 1 46
Oaklee 97 6 199 50 7 359
Respond! 2 1 21 3 27
Tintean 1 1 1 3
Tuath 19 2 1 8 3 33
AHB Not Assigned Yet 710 2 657 1,369
Grand Total 1,003 50 1,221 143 48 2,465


The LA mortgage–to–rent scheme was piloted in two local authority areas in 2013, Westmeath County Council and Dublin City Council, and was implemented nationally in February 2014. Dublin City Council and Westmeath County Council completed 10 cases and 8 cases, respectively, under the pilot scheme. Eligibility for the LA -mortgage-to-rent scheme is broadly similar to eligibility under AHB-mortgage-to-rent; however, engagement with the Mortgage Loan and Arrears Support Unit of the local authority is required as an alternative to the Mortgage Arrears Resolution Process for private lending institutions.

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