Thursday, 29 April 2021
Department of Housing, Planning, and Local Government
Shared Ownership Scheme
46. To ask the Minister for Housing, Planning, and Local Government if he will review correspondence sent by persons (details supplied) in relation to financial matters and address the issues raised therein; and if he will make a statement on the matter. [22396/21]
The "Shared Ownership Scheme" was a national scheme introduced by the Department of the Environment, Community and Local Government in 1992. Local authorities administered the Scheme in each of their administrative areas. The Shared Ownership Scheme was discontinued in June 2011 by the then Government.
The Shared Ownership Scheme was a housing scheme which facilitates access to full home ownership in stages to persons who could not afford full ownership immediately. The applicant initially acquired a share of between 40% and 75% in a dwelling and rented the remainder from the local authority/ with an undertaking to acquire the remaining equity within a 25/30 year period.
There are two types of shared ownership loans, "pre-2002 Index Linked shared ownership loans" and ‘post-2002 shared ownership loans’. Loans are made-up of a loan portion and a rental (leased) portion – most being a 50/50 split. Monthly payments are made on the loan borrowing and also a rental amount was paid. The two schemes differ in how the rental payments are calculated and the effect they have on the underlying rental equity portion outstanding.
I note from your correspondence that Limerick City and County Council has offered a number of payment options available to the borrowers. It is important that the borrowers now seek independent financial advice on this matter. In terms of ongoing scheme arrangements it would be important that a participant engages with their local authority on matters as outlined and also seeks independent financial advice and support.
Under relevant legislation, I am precluded from intervening in relation to individual cases such as this.