Michael McGrath (Cork South Central, Fianna Fail)
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555. To ask the Minister for Environment, Community and Local Government his views on the operation of shared ownership schemes; the level of arrears associated with such schemes; and if he will make a statement on the matter. [49295/14]

Alan Kelly (Tipperary North, Labour)
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In 2013, the Housing Agency was asked to conduct a stand-alone review of the shared ownership scheme, including identification of the main difficulties and recommendations for mitigating measures. While an initial draft of the review was received from the Agency, a number of issues have been identified that need further detailed financial analysis in order to fully assess the impact on local authority finances of possible mitigating measures. This substantial data collection project involving my Department, the Local Government Management Agency and the local authorities themselves is under way. It will be a number of months before sufficient data have been collected in order to complete the requisite analysis to finalise the review.

Pending full conclusion of this review, my Department issued a circular letter to local authorities setting out some of the options and interim actions that might be explored to alleviate the difficulties of those in shared ownership distress, such as allowing use of the Mortgage Arrears Resolution Process and room rental for Shared Ownership mortgage holders. It is accepted that these proposals are not a complete solution to the issues that arise for such mortgage holders but are intended as an interim measure pending the outcome of the review.

My Department issued revised guidelines to local authorities for dealing with mortgage arrears within the local authority sector in June 2014. Dealing with Mortgage Arrears – A Guide for Local Authoritiesis available on my Department’s website at:.

Although my Department publishes a wide range of housing statistics, including the number and value of local authority mortgages with a breakdown of those in arrears, there is no breakdown specifically of Shared Ownership Mortgages currently available, though the data collection process referred to above which is currently under way will be informative in that regard.

The statistics on local authority mortgage arrears generally are available on my Department’s website at:by clicking “Mortgage Data/Arrears in Local Authorities” under the Housing Loans contents.