Thomas Pringle (Donegal, Independent)
Link to this: Individually | In context | Oireachtas source

377. To ask the Minister for Housing, Planning, Community and Local Government the settlement size should the non-rural houses rate apply to the social housing capital investment-unit cost ceilings circular for the incremental purchase scheme; and if he will make a statement on the matter. [10073/17]

Simon Coveney (Cork South Central, Fine Gael)
Link to this: Individually | In context | Oireachtas source

The Tenant (Incremental) Purchase Scheme came into operation on 1 January 2016. The Housing (Sale of Local Authority Houses) Regulations 2015 (S.I. 484 of 2015) sets down the terms and conditions of operation of the scheme. Local authorities were also issued with a detailed guidance document, “Incremental Tenant Purchase Scheme 2016 Existing Local Authority Houses”.

Section 10 of the 2015 Regulations deals with the purchase price and states that the purchase price shall be determined as the greater of;

(a) the relevant market value of the house, or,

(b) 50 per cent of the estimated cost to the housing authority of providing, on the same site as the house being purchased and in accordance with prevailing national building standards and design policies for local authority housing, a house designed to accommodate a household in the same class that the house being purchased was designed for, and such estimated cost shall include, among other matters, the cost of site acquisition, legal and other professional fees.

Section 8 of the guidance document issued to authorities advises that the authority should compare the relevant market value of the house to the amount calculated as half of the most recent all-in unit cost notified to the authority by the Department for providing a rural or non-rural house, as the case may be, of a class that would accommodate a household in the same class as that for which the house being purchased was designed. As per housing circular 42/2016, dated 14 October 2016, all local authorities have been notified of the most recent all-in unit cost for their areas.

It is therefore a matter for the local authority to determine the applicable all-in unit cost for the house/ area, rural or non-rural, in line with the costings issued to them by my Department.