Thomas Gould (Cork North Central, Sinn Fein)
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58. To ask the Minister for Housing, Planning, and Local Government the cost of leases between local authorities and an organisation (details supplied) by county. [60703/21]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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The table below outlines the average annual leasing cost for new dwellings delivered in Q1 to Q3 2021 by Home for Life Ltd. under the Mortgage to Rent scheme, broken down by each Local Authority.

Thomas Gould (Cork North Central, Sinn Fein)
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59. To ask the Minister for Housing, Planning, and Local Government the number of mortgage-to-rent schemes approved through approved housing bodies or local authorities since 2018. [60704/21]

Thomas Gould (Cork North Central, Sinn Fein)
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60. To ask the Minister for Housing, Planning, and Local Government the reason a decision was taken to allow an organisation (details supplied) to engage in the mortgage-to-rent scheme; and if the reports and evidence this was based on will be published. [60705/21]

Darragh O'Brien (Dublin Fingal, Fianna Fail)
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I propose to take Questions Nos. 59 and 60 together.

The Mortgage to Rent (MTR) scheme introduced in 2012 is targeted at supporting households in mortgage arrears who have had their mortgage position deemed unsustainable by their lender under the Mortgage Arrears Resolution Process (MARP); agree to the voluntary surrender of their home and are deemed eligible for social housing support. The property in question must also meet certain eligibility criteria. The concept of the scheme is that a household with an unsustainable mortgage goes from being a homeowner to being a social housing tenant. The borrower surrenders their property to their lender who sells it to a MTR provider which can be either an Approved Housing Body (AHB) or since 2018 a private company, Home for Life Ltd. The AHB or local authority (in the case where the property is sold to a private company) becomes the landlord and the borrower remains in the property as a tenant paying a differential rent to the landlord based on his or her income.

To the end of September 2021, 1497 households with unsustainable private mortgages have completed the MTR scheme since its introduction nationally in 2013. The 1497 households in the scheme represent 2460 adults and 2091 children who have remained living in their homes and communities. As of that date, 850 active cases were being progressed under the scheme. The Housing Agency publishes, on a quarterly basis, detailed statistical information on the operation of the MTR scheme including a local authority or purchaser status report which shows a breakdown of the number of active, completed, ineligible and terminated cases per local authority or purchaser. This information is available on the Housing Agency's website at the following link: www.housingagency.ie/housing-information/mortgage-rent-statistics

A MTR scheme was also introduced for local authority borrowers initially as a pilot in 2013, and has been in place nationally since 2014. Under the scheme, a local authority can acquire ownership of properties with unsustainable local authority mortgages, thus enabling the household to remain in their home as social housing tenants. From its inception in 2013 to end 2020, the Local Authority Mortgage To Rent scheme has benefited a total of 532 households. Details and statistical information in relation to the Local Authority MTR scheme and broken down by local authority area is available on my Department's website under the heading Local Authority Mortgage to Rent at the following link: www.gov.ie/en/collection/42d2f-local-authority-loan-activity/#local-authority-mortgage-to-rent-scheme

Both MTR schemes are established parts of the overall suite of social housing options and are important parts of the mortgage arrears resolution process.

A review of the MTR scheme took place in 2017 and explored the avenues and impediments to participation in the scheme. This review was published in February 2017 and a copy is attached. Along with introducing a range of amendments to the eligibility criteria and administration of the MTR scheme, the review concluded that the financial model of the scheme at the time may not have been capable of delivering the scale of successful cases that could benefit from the scheme. The review, taking account of capacity within the AHB sector given that sector's role in delivering ambitious targets around new social housing supply, recommended that alternative funding options, including the off-balance sheet potential of private institutional investment, be explored in order to allow the MTR scheme to deliver at scale. An Expressions of Interest (EOI) Request was initiated by the Housing Agency in October 2017 inviting parties from the private sector to express their interest in participating in a new alternatively funded long-term MTR lease model. The outcome from the EOI process is that a new MTR alternatively funded lease model was announced in 2018 with Home for Life Ltd. as the participant from the private sector.

Under this alternatively funded model, Home for Life Ltd. purchases properties from lenders subsequent to their voluntary surrender by borrowers that meet the MTR eligibility criteria and then enters into a long-term 25 year lease arrangement with the local authority in whose area the property is situated for a defined term at an agreed rent, thereby enabling the borrower to remain living in their own home under a tenancy agreement with the local authority. Home for Life Ltd. is also responsible for managing and maintaining the property on behalf of the local authority in accordance with the lease requirements.

The inclusion of an MTR provider from the private sector has facilitated more individuals and families staying in their homes. Given the sizeable cohort of borrowers still in long-term mortgage arrears, all the MTR providers participating in the scheme are needed in order to meet the demand for the scheme. In all scenarios, my Department and the Housing Agency are focused on meeting the long-term housing needs of the greatest number of households in unsustainable mortgage arrears.

The Programme for Government and Housing for All includes a commitment to strengthen the Mortgage to Rent Scheme and ensure that it is helping those who need it. Building on the significant improvements already made to the scheme since 2017, my Department is currently working closely with the Housing Agency and key stakeholders to identify any further improvements required to the scheme. As set out in Housing For All, the review of the MTR scheme is scheduled to be delivered in Q4 of this year and I expect to be in a position to make an announcement shortly.

<a href="https://data.oireachtas.ie/ie/oireachtas/debates/questions/supportingDocumentation/2021-12-08_pq59-60-08-12-2021_en.pdf ">Mortgage to Rent Scheme</a>