Written answers

Tuesday, 7 December 2021

Department of Housing, Planning, and Local Government

Housing Policy

Photo of Michael CollinsMichael Collins (Cork South West, Independent)
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234. To ask the Minister for Housing, Planning, and Local Government the supports available for a couple that have both been married before and lost their homes in their divorces; the schemes that are available to persons in this situation in relation to purchasing and building their own home; and if he will make a statement on the matter. [60517/21]

Photo of Darragh O'BrienDarragh O'Brien (Dublin Fingal, Fianna Fail)
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The Housing for All strategy prioritises an increase in social and affordable homes committing to the delivery of 90,000 social homes, 36,000 affordable purchase homes and 18,000 cost rental homes by 2030. Full details of the strategy can be found at the following link:

www.gov.ie/en/publication/ef5ec-housing-for-all-a-new-housing-plan-for-ireland/.

Pathway 1 of the strategy refers to “Pathways to Home Ownership and Increasing Affordability”.This pathway provides for the establishment of two new affordable purchase schemes, the Cost Rental scheme and the local authority home loan.

Whilst, in general, the affordable purchase schemes and the local authority home-loan will be targeted at First Time Buyers, the strategy confirms that a “Fresh Start” principle will be applied to applications. This means that people who are divorced/separated and no longer have a financial interest in the family home, or who have undergone insolvency proceedings, will be eligible to apply.These individuals would also be eligible to apply for homes made available under Cost Rental subject to the standard criteria being put in place for that scheme.

Specifically in relation to the Local Authority Affordable Purchase scheme, the Fresh Start principle has already been accommodated under Part 2, Section 10 of the Affordable Housing Act 2021. This scheme will support purchasers in purchasing local authority delivered new homes by bridging the gap between the market value of the home and the combined value of the buyer's mortgage and deposit.

Part 4 of the Affordable Housing Act 2021 provides for the establishment of the First Home scheme, which will act in a similar way to the local authority led scheme, though will apply to homes delivered by private developers. The First Home scheme will be deployed in 2022 and will apply to newly built homes within designated price ceilings.

The Housing for All strategy also introduced the Local Authority Home Loan scheme as a successor to the Rebuilding Ireland Home Loan. The Local Authority Home Loan will commence early next year and will incorporate an increase in the income ceiling for single applicants, as well as a lower rate of interest. The Local Authority Home Loan is available to individuals buying new or second-hand homes, as well as self-builds.

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