Michael McGrath (Cork South Central, Fianna Fail)
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132. To ask the Minister for Finance the number of households in negative equity; his views on the implications of this for the wider economy; and if he will make a statement on the matter. [54016/17]

Paschal Donohoe (Dublin Central, Fine Gael)
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This issue is discussed in the Central Bank’s Macro-Financial Review published this week -

Box 2: Negative equity in the Irish housing Market: recent developments

This notes that approx. 75,000 mortgages are now in negative equity, down from a peak of 320,000 in Q4 2012 .  

For Primary Dwelling Homes, 8.7 per cent of loans remain in negative equity (down from 36.2 per cent in Q4 2012).

BTL properties had a higher share of negative equity throughout the period with 15.5 per cent of BTLs currently in negative equity, down from 54.6 per cent in Q4 2012.

Negative equity in the Irish mortgage market has been in decline in recent years. As well as being of benefit to individual borrowers, this can be beneficial to overall financial stability, including through positive effects on consumption and consumer confidence and by aiding housing mobility.

In addition it is worth pointing out that a total stock of over 120,000 PDH mortgage accounts were classified as restructured at end-June 2017.  At end-June 2017 87 per cent of restructured accounts were deemed to be meeting the terms of their arrangement.  For BTL a total stock of over 23,000 mortgage accounts were categorized as restructured at end-June 2017.  87 per cent of the total stock of restructured accounts were meeting the terms of their current restructure. This shows that engagement by borrowers with their lenders works.

I would also like to draw the Deputy's attention to recent progress made by the Government in assisting those in mortgage arrears. The Abhaile service helps borrowers in arrears to find the best solutions and keep them, if possible, in their own homes. This is assisting borrowers, particularly those in longer term arrears. A dedicated adviser will work with borrowers in arrears and their lender to find the best solution for them.  

Borrowers can get free advice from an expert financial adviser who can help them to work through their financial situation and where possible help them to remain in their home. An Expert adviser could be from MABS or a Personal Insolvency Practitioner (PIP) or an accountant.

Borrowers may also need legal advice and under Abhaile and they can have a free meeting with a solicitor.

If called to court to face repossession proceedings on their home, they will be able to meet a Duty Solicitor at the court. A MABS staff member will also be present at court to help them.

A Helpline is available Monday to Friday and a face-to-face service which is completely free, confidential and independent is also available in more than 60 MABS locations nationwide.