Bernard Durkan (Kildare North, Fine Gael)
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118. To ask the Minister for Housing, Planning, Community and Local Government if it is reasonable to expect that the income limit currently set by local authorities in respect of eligibility for local authority housing is realistic in view of the fact that a person deemed ineligible for housing based on the present income limits is unlikely to be in a position to rent or purchase a house under present conditions; and if he will make a statement on the matter. [2321/17]

Simon Coveney (Cork South Central, Fine Gael)
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The Social Housing Assessment Regulations 2011 prescribe maximum net income limits for each housing authority, in different bands according to the area, with income being defined and assessed according to a standard Household Means Policy. The income bands and the authority area assigned to each band were based on an assessment of the income needed to provide for a household's basic needs plus a comparative analysis of the local rental cost of housing accommodation across the country. The limits also reflect a blanket increase of €5,000 introduced prior to the new system coming into operation, in order to broaden the base from which social housing tenants are drawn and thereby promote sustainable communities.

Given the cost to the State of providing social housing, it is considered prudent and fair to direct resources to those most in need of social housing support. I am satisfied that the current income eligibility requirements generally achieve this and that they provide for a fair and equitable system of identifying those households unable to provide accommodation from their own resources. These income limits will continue to be kept under review by my Department, as part of the broader social housing reform agenda set out in the Social Housing Strategy 2020.

I am aware of the difficulties experienced by some households in purchasing their own home where they are not eligible for social housing support on income grounds. It may be possible for such households to avail of a mortgage from a local authority which is targeted at lower income first-time buyers who can demonstrate that they are unable to get a loan from a building society or bank. A loan can be up to 97% of the price of the property, subject to a maximum loan of €200,000. The relevant terms and conditions applying to local authority housing loans are set out in the Housing (Local Authority Loans) Regulations 2012, which prescribe a maximum annual gross income threshold of €50,000 for a single person household or a combined annual gross income of €75,000 for a two person household. The Regulations are available on my Department’s website at: Housing (Local Authority Loans) Regulations 2012.

Another option is the Home Choice Loan for first time buyers. The Home Choice Loan is available through authorised mortgage brokers and can be used to provide up to 92% of the market value of the property being purchased, up to a maximum loan amount of €285,000. A new or second hand property may be purchased under the scheme. Further information is available at: www.homechoiceloan.ie.

On 13 December 2016, the Government approved the publication of a Strategy for the Rental Sector. The Strategy identifies high and rapidly rising rents as the key driver of accommodation insecurity for tenants and a factor in the termination of tenancies. To address this situation, the Rental Strategy introduced a Rent Predictability measure to moderate rent increases in those parts of the country where the imbalance between demand and supply of rental accommodation is driving rent levels upwards.

The Planning and Development (Housing) and Residential Tenancies Act 2016 gave effect to, and provided for the immediate implementation of, the Rent Predictability Measure.  Areas of the country where rents are high and rising will be designated as Rent Pressure Zones and rent increases in those areas will be capped at 4% per annum for a period of three years.  The measure was introduced with immediate effect in the four Dublin Local Authority areas and in Cork City.

The Strategy recognises the difficulties facing households on moderate incomes in accessing affordable rental accommodation in high pressure areas and includes short-term actions by relevant local authorities to use publicly owned sites to kick-start supply of more affordable rental units for such households. In this regard Dublin City Council will be launching a call for Expressions of Interest in relation to three Dublin sites. In the longer term the strategy aims to support the development of the not-for-profit rental sectors and an Expert Group to take forward this work will be established in the near future.