Maureen O'Sullivan (Dublin Central, Independent)
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62. To ask the Minister for Housing, Planning, Community and Local Government his views on whether the threshold of €15,000 earnings without welfare allowances is prohibitive for many trying to purchase council homes from the local authority; his further views on whether changes to the threshold could contribute in a small way to alleviating the housing crisis; and if the situation will be reviewed in the coming year. [28428/16]

Simon Coveney (Cork South Central, Fine Gael)
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The new Tenant Incremental Purchase Scheme came into operation on 1 January 2016. The Scheme is open to eligible tenants, including joint tenants, of local authority houses that are available for sale under the Scheme. As the Deputy is aware, to be eligible, tenants must meet certain criteria, including having a minimum reckonable income of €15,000 per annum. In determining reckonable income, the income of the tenants of the house, including adult children that are joint tenants can be included, as can the income of the spouse, civil partner or other partner/co-habitant of a tenant who lives in the house with them.

Reckonable income is calculated as gross income. Income from social welfare payments is included in the reckonable income but only where these payments constitute a secondary source of income.

In order to ensure the sustainability of the scheme, it is essential that an applicant’s income is of a long-term and sustainable nature. This is necessary to ensure that the tenant purchasing the house is in a financial position, as the owner, to maintain and insure the property for the duration of the charged period. This ensures compliance with the conditions of the order transferring the ownership of, and responsibility for, the house from the local authority to the tenant.

In line with the commitment in the Programme for a Partnership Governmentand reaffirmed in Rebuilding Ireland- Action Plan for Housing and Homelessness, I intend to undertake a review of the scheme in January 2017 following the first 12 months of operation and I will bring forward any changes to the terms and conditions of the scheme which are considered necessary based on the evidence gathered at that stage.