Written answers

Tuesday, 14 February 2017

Department of Housing, Planning, Community and Local Government

Tenant Purchase Scheme

Photo of Jackie CahillJackie Cahill (Tipperary, Fianna Fail)
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247. To ask the Minister for Housing, Planning, Community and Local Government the reason a person with sufficient funds is not allowed to purchase their home from Tipperary County Council under the tenant purchase scheme; the rules, regulations or legislation which is imposed on the council precluding it from selling properties to long-term tenants who have sufficient resources to purchase and repair a property; and if he will make a statement on the matter. [7009/17]

Photo of Simon CoveneySimon Coveney (Cork South Central, Fine Gael)
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The 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. To be eligible, tenants must meet certain criteria, including having a minimum reckonable income of €15,000 per annum and having been in receipt of social housing support for at least 1 year.

The minimum reckonable income for eligibility under the Scheme is determined by the relevant housing authority in accordance with the detailed provisions of the Ministerial Direction issued under Sections 24(3) and (4) of the Housing (Miscellaneous Provisions) Act 2014. In the determination of the minimum reckonable income, housing authorities can include income from a number of different sources and classes, such as from employment, private pensions, maintenance payments and certain social welfare payments, including pensions, where the social welfare payment is secondary to employment 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, in 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 given in the Rebuilding Ireland Action Plan for Housing and Homelessness, a review of all aspects of the first 12 months of the scheme’s operation is currently being undertaken by my Department. Any changes to the terms and conditions of the scheme which are considered necessary based on the evidence gathered at that stage will be brought forward.

I expect this review to be completed by the end of Quarter 1 2017.

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